Empire Today Enhances Liquidity Through New Credit Agreement
Empire Today®, LLC, widely recognized as Empire Carpet® and Empire Flooring®, has taken a significant step in securing its financial future. By entering into a new credit facility, the largest shop-at-home, direct-to-consumer flooring company has successfully addressed its liquidity needs and extended crucial debt maturities.
Details of the New Credit Facility
The latest agreement involves lenders who hold about 82% of the existing term loans and 100% of the revolving commitments. This strategic move ensures that Empire Today not only augments its liquidity but also secures favorable terms that will help fortify its financial position.
Maturity Extensions
With the new credit facility, Empire Today has extended the maturity date of its revolving credit facility to 2029. Furthermore, 82% of its term loan maturity has also been deferred until 2029, while opportunities exist for the remaining lenders to join this extension. This proactive measure will enable the company to better navigate the current economic landscape.
CEO Comments on the Transaction
Brian Hutto, CEO of Empire Today, expressed his enthusiasm regarding the new agreement: "Today's transaction represents a critical step forward for Empire, providing us with the liquidity and financial flexibility necessary to continue to navigate the shifting business environment," he noted. This reflects a broader strategy to enhance operational efficiency as the company prepares for anticipated growth in the flooring industry.
Operational Improvements and Management Strengthening
In addition to financial maneuvers, Empire Today has also taken significant steps to streamline its operations and bolster management. Such efforts are designed to position the company to take full advantage of upcoming market opportunities, ensuring a robust response to consumer demand.
Support from Financial Advisors
Empire Today has engaged Ropes & Gray LLP and Greenhill & Co., LLC as external legal and financial advisors, reinforcing their commitment to careful strategic navigation. Moreover, Paul Hastings LLP and Lazard are advising an ad hoc group of first lien lenders, further illustrating the extensive support surrounding this important agreement.
About Empire Today, LLC
Empire Today has been a leader in the home improvement industry for over six decades, providing a vast range of flooring solutions. With services spanning from residential to commercial applications, the firm is known for its convenient shop-at-home option and professional installation services. It's a hearty commitment to quality and customer satisfaction that has earned Empire a loyal client base of over 3 million satisfied customers.
Product Range Offered
The company offers a multitude of flooring options, including carpet, hardwood, laminate, tile, and vinyl. These are complemented by next-day installation for many products, ensuring that customers get prompt service along with high-quality items.
Partnering for Continued Growth
As Empire Today moves forward with this new funding arrangement, it continues to appreciate the relationships it maintains with key financial partners, including Charlesbank and H.I.G. Capital. These partnerships are vital in paving the way for sustainable growth and operational excellence in this evolving marketplace.
Frequently Asked Questions
What is the purpose of Empire Today's new credit facility?
The new credit facility aims to enhance liquidity and extend the maturities of existing debts, positioning the company for future growth.
Who are Empire Today’s main financial partners?
Empire Today has strategic partnerships with Charlesbank Capital Partners and H.I.G. Capital, which are pivotal for their current financial strategies.
How long has Empire Today been in business?
Empire Today has been a trusted provider of home improvement solutions for 65 years, specializing in flooring and related services.
What key changes has Empire Today made recently?
Empire has streamlined its operations and strengthened its management team to better prepare for anticipated growth in the flooring industry.
Where can I find more information about Empire Today?
For additional details, you can visit the Empire Today website, which provides comprehensive information about their services and products.
