New credit facility eases NexCen obligations  

New York – Under a restructured bank credit facility with BTMU Capital, brand management company NexCen Brands has gained operating liquidity and received a waiver of various past lending covenant defaults and alleged defaults.

The amended and restated borrowing, security and related agreements with BTMU “replace all of the prior bank credit agreements and significantly revise the terms of the outstanding borrowings, which total $175.7 million,” NexCen said.

While the new facility reduces NexCen’s mandatory principal payments, it also increases interest obligations and “substantially tightens the covenants and events of default,” the company stated, adding, “No additional borrowings are permitted and the facility remains secured by substantially all of the assets of the borrower subsidiaries.”

The outstanding loans have been restructured into three separate tranches in the amount of $47.6 million maturing on Jan. 1, 2010, $41.7 million maturing on July 31, 2011 and the remaining $86.3 million maturing on July 31, 2013.

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