Tropitone Closes $27 Million Refinancing Agreement

Furniture World Magazine

Tropitone Furniture Co., Inc., a leading manufacturer of casual furniture, announced that it has closed a refinancing agreement with Bank of America Business Capital. The refinancing provides for $27.0 million in senior revolving and term loan facilities with Bank of America Business Capital, which in conjunction with a reduction in junior secured debt, significantly lowers Tropitone's effective interest rate. According to Michael Echolds, chief executive officer of Tropitone, the new financing will support both ongoing operations as well as future growth, such as the expansion of the Stoneworks table and tabletop products, which utilize a technology and manufacturing process that Tropitone gained access to in 2001 with its acquisition of Sun West. Among the factors, Echolds said, that have contributed to the ongoing confidence of the company's lenders in Tropitone's market opportunities and operational performance are: -A proven manufacturing process that delivers superior results both in product quality and time-to-market. -The successful integration of the Sun West operation into Tropitone's ongoing business, which has given the company a significant competitive advantage in the marketplace. Tropitone is the only major company in the casual furniture industry with the technology and manufacturing capabilities to design and produce its own high-quality solid surface tables and tabletops. As a result, Tropitone controls not only time-to-market but also can design these tables and tabletops to color coordinate with its seating products. -The sustained interest among both retail and contract customers in Tropitone's traditional seating products; the strong market acceptance of its innovative table and dining products, including the Stoneworks solid surface tables and tabletops; and Tropitone's diverse offerings of its Basta Sole shade solutions that are designed to complement the company's seating and dining product lines as well. About Tropitone Furniture: 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 and Basta Sole trademarks. In addition 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. About Bank of America Business Capital: Bank of America Business Capital™ is one of the world's largest asset-based lenders, with more than 20 offices serving the United States, Canada and Europe. It provides companies with senior secured loans, cash management, risk management and a broad array of capital markets products. Visit www.bofa.com/businesscapitalnews for more information.