The proceeds of the loan will be utilized for general working capital purposes, in addition to the redeeming of the company's existing 12% senior notes and the repayment of existing secured bank debt.
"This new facility substantially lowers our borrowing costs, diversifies our banking relationships and provides the company with significantly greater flexibility in financing our operations," says Steven O. Spelman Jr., the company's chief financial officer.
The loan facility has a two-year revolving period and then converts to a one-year loan with quarterly principal and interest payments. It was completed with four major banks, Bank One Arizona N.A., Syndicate Agent Fleet National Bank, Washington Mutual Bank F.A., and California Bank & Trust.
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