Cybex International, Inc. announced that it has received commitment letters from CIT Business Credit and Hilco Capital LP to provide a $30 million, three year senior financing facility which would re-finance the Company’s current bank debt with FleetBoston Financial and Wachovia Bank.
Additionally, the Company’s principal stockholder, UM Holdings, has agreed to provide up to $8.0 million in subordinated loans and other guarantees, including advances made to date, as part of such refinancing, which would also provide the Company with additional working capital. These transactions are subject to the execution and delivery of definitive documentation and customary closing conditions.
John Aglialoro, Chairman and CEO, commented “The new debt facility is a vital step for Cybex in the company’s continued growth and profitability. We expect that Q2 will see double-digit revenue growth, exceeding prior guidance of 3%-5%.”
