Broder Bros. said it is considering increasing the size of its $175 million revolving credit facility to $215 million accommodate both continued cotton apparel price increases and continued unit growth.
In a SEC filing, the distributor of promotional t-shirts and sportswear said it believes that considering increasing the size of the company's revolving credit facility is prudent to finance both higher replacement costs and higher market share.
The company launched a consent solicitation to holders of its Senior Notes due October 2013 to amend the indenture governing the Senior Notes to permit the company to increase the borrowing capacity under the revolving credit facility from $175.0 million to $215.0 million, subject to a borrowing base. Concurrent with the consent solicitation, the Company launched a syndication process with the existing lenders under its revolving credit facility to exercise its accordion feature under the existing revolving credit agreement. The consent solicitation period expires on 5 p.m., New York City time, on March 25, 2011.
