Friedman’s Inc will have a line of credit of up to $125 million when it comes out of Chapter 11 bankruptcy protection.
The Savannah, Ga.-based jewelry retailer said it has a commitment letter from CIT Group Inc. in New York to provide the fully underwritten revolving credit facility. The revolving line of credit has a five-year term.
“We are very pleased with the CIT exit facility and the liquidity it provides as we exit chapter 11 and continue to rebuild Friedman’s,” said Sam Cusano, Friedman’s CEO. “With the additional benefit that CIT’s factoring line will provide our vendors, we expect CIT’s total financing package to provide a tremendous amount of confidence for our vendor partners,”
The financing will be used to fund its amended plan of reorganization, for ongoing working capital needs and for general corporate purposes.
Company officials say the company is on track to come out of bankruptcy Dec. 31. Prior to filing from bankruptcy, Friedman’s was the nation’s third largest jewelry chain.