Rocky Brands, Inc. has concluded a private placement of $40 million in fixed rate Senior Notes with Laminar Direct Capital and Whitebox Advisors. The Senior Notes accrue interest at a fixed rate of 11.50% and are due on May 25, 2012. Piper Jaffray acted as lead arranger on this transaction.

The company, based in Nelsonville, Ohio, used the proceeds from the private placement to repay all outstanding amounts under its existing term loans, including a $15 million term loan with a second lien lender at an interest rate of LIBOR plus 8.5% and $16 million amortizing term loans with GMAC Commercial Finance at an interest rate of LIBOR plus 3.5%. The remaining proceeds will be used for working capital and general corporate purposes.

Mike Brooks, Chairman and Chief Executive Officer, commented, “We are very pleased to have completed this new financing which provides us with additional working capital to help fund our future growth. Equally important, a substantial portion of our debt is now at a fixed rate as a result of this restructuring, reducing our exposure to any potential increases in interest rates.”

The Company stated that as a result of the early retirement of its term loans with its existing second lien lender and GMAC Commercial Finance, it expects to incur a non-cash charge of approximately $0.7 million, or $0.08 per diluted share in the second quarter of fiscal 2007, to write off prepaid financing costs related to the retired loans.

Rocky's brands include Rocky Outdoor Gear, Georgia Boot, Durango, Lehigh, and the licensed brands Dickies, Zumfoot and Michelin.