Lumber Liquidators reached agreement with its lenders to amend its Senior Secured Credit Facilities. While the Facilities maturity remains March 2024, the amendment is effective through August 30, 2020 and provides:
- An increase in the senior asset-based revolving credit facility from $175 million to $212.5 million which increases the total availability under the Senior Secured Credit Facilities from $200 million to $237.5 million, subject to the borrowing base calculation.
- An increased advance rate against inventory under the borrowing base.
This amendment, in addition to the steps described in the Business Update, provides meaningful incremental liquidity to aid in weathering COVID-19-related challenges.
The Company augmented its cash balance by borrowing $37 million under the amended ABL facility, and as of April 17, the Company had liquidity of approximately $120 million including approximately $41 million in cash and cash equivalents.
Lumber Liquidators is one of North America’s leading specialty retailers of hard-surface flooring.