MCLEAN, Va., Jan. 30 /PRNewswire-FirstCall/ -- The Rowe Companies (the "Company") (AMEX:ROW) announced today that it has entered into a modification of its existing credit agreement with GE Commercial Finance ("GE") governing the Company's senior secured revolving credit facility and Tranche B loan. The modification eliminates the requirement that the Company raise additional equity and increases the Company's current borrowing availability under the revolving credit facility by $3,000,000.
In connection with the modification, Gerald M. Birnbach, Chairman of the Board and President of the Company, and Sidney J. Silver, a director of the Company, provided limited guaranties of up to $1,500,000 each, secured by letters of credit with a third party financial institution in favor of the lenders.
A Current Report on Form 8-K describing the credit agreement modification and the terms of the guaranties in greater detail has been filed by the Company with the Securities and Exchange Commission.
Said Mr. Birnbach, "The increase in the borrowing availability and the elimination of a fixed time table for raising equity affords the Company additional time for implementing its performance improvement plan and exploring growth capital alternatives. We are very appreciative of GE's willingness to work with the Company in this fashion." The Rowe Companies operates two subsidiaries in the home furnishings industry: Rowe Furniture, Inc., a major manufacturer of quality upholstered furniture serving the middle and upper middle market throughout the U.S.; and Storehouse, Inc., a multi-channel, lifestyle home furnishings business including 69 retail home furnishings stores. Storehouse makes good design accessible by selling an edited assortment of casual, contemporary home furnishings through its stores located in the Southeast, Southwest and Mid- Atlantic markets, its catalog and over the internet.
Statements in this press release concerning the Company's business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items; together with other statements that are not historical facts, are "forward-looking statements" as that term is defined under Federal Securities Laws. "Forward-looking statements" are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those stated in such statements. Such risks, uncertainties and factors include, but are not limited to, industry cyclicality, fluctuations in customer demand and order patterns, the possibility that the Company will be unable to raise capital on terms acceptable to it within the time frames it desires, the seasonal nature of the business, changes in pricing, and general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission. First Call Analyst: FCMN Contact: DATASOURCE: The Rowe Companies CONTACT: Garry W. Angle, Vice President-Treasurer of The Rowe Companies, +1-540-444-5077 Web site: http://www.therowecompanies.com/
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