DANBURY, CT -- Residential furniture manufacturer Ethan Allen Interiors Inc. has raised its borrowing capacity to up to $50 million with the possibility of raising the total capacity up to $100 million.
To get the amended line of credit, provided by JPMorgan Chase Bank and Wells Fargo Bank, Ethan Allen said it pledged all its U.S. assets, except its real estate, as security.
"This modification reduces the carrying costs of the facility," said Farooq Kathwari, CEO. "The opportunity for expansion to $100 million provides flexibility for future business opportunities."
Ethan Allen also said the credit line was extended four years to March 25, 2016, or June 26, 2015 if its 5.375% long term bonds have not been refinanced to reduce its load costs.
Ethan Allen sells furniture through ethanallen.com and a network of approximately 280 design centers in the United States and abroad. The company also owns and operates five manufacturing plants and one sawmill in the United States and one manufacturing plant in Mexico.
Read more about Ethan Allen's new line of credit deal.
Posted by Rich Christianson
Have something to say? Share your thoughts with us in the comments below.