Ethan Allen Interiors Inc. (“Ethan Allen” or the “Company”) (NYSE:ETH)
today announced it has entered into a new three year senior secured
revolving credit facility. The new facility is initially set at $40
million with an accordion feature permitting increase to up to $60
million.
The Company currently has no plans to use the facility other than for
its outstanding letters of credit (currently $12.5 million). The credit
facility is provided by a syndicate led by JP Morgan Chase Bank, N.A.
The facility is secured by the Company’s domestic assets other than real
estate and related fixed assets.
Farooq Kathwari, Chairman and CEO commented, "We are pleased that we
have been able to maintain a strong cash position. While we expect that
to continue, it is prudent for the Company to have a modest credit
facility. We continue to have good liquidity from our business
operations and have significant flexibility under this new facility,
including no encumbrances on the more than $300 million of value in the
real estate owned by the Company.”
About Ethan Allen
Ethan Allen Interiors Inc. is a leading manufacturer and retailer of
quality home furnishings. The Company sells a full range of furniture
products and decorative accessories through a network as of March 31,
2009 of 290 design centers in the United States and abroad, of which 159
are Company owned. Ethan Allen operates eight manufacturing facilities
in the United States, which include two sawmills, and one manufacturing
facility in Mexico. For more information on Ethan Allen’s products and
services, visit ethanallen.com.
This press release should be read in conjunction with the Company’s
Annual Report on Form 10-K for the year ended June 30, 2008 and other
reports filed with the Securities and Exchange Commission. This press
release and related discussions contain forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements reflect
management’s current expectations concerning future events and results
of the Company, and are subject to various assumptions, risks and
uncertainties. Accordingly, actual future events or results could differ
materially from those contemplated by the forward-looking statements.
The Company assumes no obligation to update or provide revision to any
forward-looking statement at any time for any reason.
Ethan Allen Interiors Inc.
Investor / Media:
David R. Callen,
203-743-8305
Vice President Finance & Treasurer
