Huffy Corporation has finalized a $15.0 million subordinated term loan with Ableco Finance LLC, a fund affiliated with Cerberus Capital Management, L.P., and Congress Financial Corporation. The loan, repayable on its March 13, 2008 maturity date, is pegged at an interest rate of U.S. prime rate plus 7.0%.
HUF’s $75.0 million revolving loan and security agreement with Congress Financial remains in place.
Cerberus may sound familiar to many, as a subsidiary of the private equity firm was announced last week as the acquirer of Fila Holding.
The new financing arrangement is expected to give Huffy greater flexibility in realizing the vision of creating a diversified branded sporting goods company and enables HUF to better fund future growth.
