Fleet Capital Provides $150 Million To The Dixie Group

Furniture World Magazine

Fleet Capital Corporation, one of the nation’s largest commercial finance companies, today announced that it provided a $150 million secured credit facility to carpet manufacturer, The Dixie Group (NASDAQ:DXYN). Dixie will use the new facility to refinance existing debt and provide for ongoing working capital. The new credit facility consists of a $110 million revolving facility through a five-year commitment period and a $40 million term loan. Fleet Securities Inc. served as the lead arranger for the deal. “We’re pleased to provide this new credit facility to The Dixie Group, a company with strong market share and an outstanding management team,” said Fleet Capital Executive Vice President Harold Blatt. “This credit facility should provide the financial flexibility Dixie needs to continue to implement its business plan.” Dixie's Chairman and Chief Executive Officer Daniel K. Frierson, said, "Completing this credit agreement as well as the sale of our Calhoun, Georgia, facility strengthens our balance sheet and improves our financial flexibility. A major focus of our strategy has been debt reduction. Since the high point of the our debt in August 2000, through May 14, 2002, we have reduced debt, including amounts advanced under our accounts receivable securitization program, by almost $100 million." The Dixie Group (www.thedixiegroup.com) is a leading carpet and rug manufacturer and supplier to higher-end residential and commercial customers serviced by Masland Carpets and Fabrica International, to consumers through major retailers under the Bretlin, Globaltex and Alliance Mills brands and to the factory-built housing and recreational vehicle markets through Carriage Carpets. Dixie's Candlewick Yarns serves specialty carpet yarn customers. Fleet Capital Corporation, which has more than 20 offices located throughout the United States, provides secured financing and a broad array of capital markets products to domestic middle-market companies and their foreign subsidiaries. Fleet Capital is part of FleetBoston Financial Corporation, the nation’s seventh largest financial holding company with approximately $192 billion in assets. FleetBoston Financial offers a comprehensive array of innovative financial solutions to 20 million customers in some 20 countries. FleetBoston Financial is headquartered in Boston and listed on the New York Stock Exchange (NYSE: FBF) and the Boston Stock Exchange (BSE: FBF).