Middleby obtains $95 million credit facility

By Sara Rosenberg

New York, Dec. 23 - The Middleby Corp. obtained a new $95 million senior credit facility. Bank of America was the lead bank on the deal.

Proceeds from the facility were used to refinance existing bank debt, repay $25.5 million of 15.5% subordinated senior debt and to repurchase 358,346 stock warrant rights issued in conjunction with the subordinated senior debt for $2.7 million.

"With the new financing we will initially utilize $65 million of the $95 million senior bank facility," said Selim A. Bassoul, president and chief executive officer, in the release. "The new senior bank facility provides us with increased borrowing availability over the old financing structure which, when combined with our positive cash flows, puts us in a strong financial position going into 2003."

"The debt refinancing will allow us to significantly reduce interest costs," said William F. Whitman, Jr., chairman, in a news release. "The retired notes, which originally would have matured in September 2006, carried a 15.5 % rate of interest as compared to a rate of just under 5% on our refinanced senior bank debt. The new financing agreement provides Middleby with more financial flexibility. In addition, the subordinated senior debt agreement had originally provided for up to 807,326 stock warrants, depending on certain provisions. Based on a "claw back" provision, this had been reduced to 358,346 stock warrants - all of which have now been retired."

Middleby is an Elgin, Ill. cooking and warming equipment company.

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