Escalade, Inc. signed a commitment letter with JP Morgan Chase, its
current lender, for a new senior secured revolving credit facility in
the maximum amount of $50.0 million and, through Chase's London branch,
a senior secured revolving credit facility in the maximum amount of
3.0 million ($4.1 million).
The Evansville, IN-company said the credit facility is to extend
through May 17, 2010 provided the company is in compliance with the
stated financial covenants. Upon entry into the definitive new loan
agreements, the company's existing covenant violations under its
existing credit facilities with JP Morgan Chase will be waived.
“We are pleased to have signed a new loan commitment with JP Morgan
Chase,” stated Robert J. Keller, president and chief executive officer
of Escalade, Inc. “We are also making progress on many fronts to
streamline our business and expand market opportunities.”
The company noted that it has implemented a series of profit
improvement initiatives designed to generate improved financial
results. These actions include:
— Closing of two manufacturing facilities (Evansville, Indiana and
— Consolidating table tennis production into the Rosarito, Mexico
— Reduced headcount by over 20%.
— Reduced officer salaries by 10%.
— Reduced director fees by 10%.
— Reduced 401k company-matched contributions.
— Suspended salary increases for all employees.
— Reduced overall SG&A by 20%.
On January 20, Escalade said that it had received a letter from a
lender, saying it was in default on its credit agreement, according to
a filing with the Securities & Exchange Commission. The filing said
that the company and the lender, JPMorgan Chase, are “undertaking
negotiations” concerning the default issues.
Escalade makes pool tables, table tennis tables, game tables,
basketball systems and wood playsets, Its sports brands include:
Goalrilla, Goaliath, Silverback, Stiga, Mizerak, Murrey Billiards,
Mosconi Billiards, The Black Widow, ChildLife Harvard Game, Murrey
Game, Accudart, Bear Archery, Fred Bear, Jennings Archery, The Step and
US Weight. It also owns a home furnishings business.