Tropitone Closes $29.6 Million Refinancing Agreement

Furniture World Magazine

Tropitone Furniture Co., Inc., a leading manufacturer of casual furniture, announced today that it has closed a $29.6 million refinancing with Fleet Capital Corporation and Catalyst Equity Partners, LLC. According to Michael Echolds, Chief Executive Officer of Tropitone, the new financing is aimed at supporting the company’s continued growth strategies with additional working capital. According to Echolds, Tropitone’s success in securing this funding, particularly in the current economic environment, represents a strong ‘vote of confidence’ in the company’s strengthened financial performance. "Our banking partners also clearly recognize both the excellent relationships we have with our current customers and Tropitone’s future opportunities to expand its customer base," he said. "With the additional financing, Tropitone will invest in new product development and increased automation and productivity in our manufacturing process," Echolds said. "We also will expand the operations of the recently acquired Sun West Creations, a leading manufacturer of high quality, solid urethane tabletops." Fleet Capital Senior Vice President John Roberts said, "We’re pleased to partner with Catalyst Equity Partners to provide these new facilities to Tropitone. This credit structure should provide Tropitone with sufficient liquidity to move forward with implementing its business plan while enduring the current economic slowdown." Fleet Capital provided a $24.6 million senior secured credit facility. The company, which has 25 offices located throughout the United States and approximately $16 billion in committed lines of credit, provides secured financing and other financial services to domestic middle-market companies and their foreign subsidiaries. Fleet Capital is part of FleetBoston Financial Corporation, the nation’s seventh largest diversified financial holding company with more than $200 billion in assets. For more information about Fleet Capital, visit its Web site at www.fleetcapital.com. Founded in 1954, Tropitone is based in Irvine, California, and is recognized throughout the casual furniture marketplace for its design leadership as well as its commitment to service and value. The company sells its products to retailers, designers and the hospitality trade under the Tropitone, Veneman and Basta Sole trademarks. In August 2001, it acquired Sun West Creations, which offers an extensive selection of contemporary styles and sizes of tabletops that go beyond the traditional glass tabletops to include faux stone and marble mosaic tile. In additional to its headquarters and manufacturing plant in Irvine, the company operates a manufacturing facility in Sarasota, Florida. For more information about the company, visit www.tropitone.com.