Carpet company extends financing five years

9/16/2011

The Dixie Group, a Santa Ana, California-based marketer and manufacturer of high-end carpets and rugs, recently had to refinance a business loan to allow for early redemption of convertible subordinated debentures.

Wells Fargo facilitated a transaction that consisted of a new $90 million revolving credit facility with a five-year term. The company had $9.7 million of a 7 percent convertible debenture due in May 2012, and needed to permit early redemption.

As a result, the Dixie Group's financing has been extended and its term loan increased from $5.5 million to $11.1 million. Furthermore, it plans to repurchase the subordinated debenture, which, along with the other transactions, will lower the carpet company's interest costs and extend its financing until 2016.

The move will also help accommodate future growth as it begins to rebound with the economy.

According to its website, The Dixie Group markets its products to domestic and international customers in the construction, replacement and retail industry. It provides services in a variety of settings, including homes, restaurants, luxury motor coaches and yachts.