EAST RUTHERFORD, NJ--(Marketwired - Apr 9, 2014) - Kid Brands, Inc. (OTCQB: KIDB) today announced that it has executed a waiver and amendment to its existing credit agreement with Salus Capital Partners, LLC.
The amended credit agreement removes certain restrictions on lending for four months, suspends existing financial covenants through August 31, 2014 and waives specified events of default and failures of conditions to lending, in consideration for a new collateral coverage ratio, a 2% per annum interest rate increase, and Company Board of Directors specified, non-voting participation rights, among other provisions. The provisions of the amended agreement are described in detail in the Company's Form 8-K filed today with the SEC.
Kerry Carr, Executive Vice President, COO and CFO, commented, "We appreciate the support of Salus Capital as we continue to examine a broad range of strategic and financing alternatives for the Company. We believe that our amended credit agreement provides Kid Brands with the opportunity to comprehensively evaluate financing and liquidity options intended to strengthen our business and enhance shareholder value."
Kid Brands, Inc.
Kid Brands, Inc. and its subsidiaries are leaders in the design, development and distribution of infant and juvenile branded products. Its design-led products are primarily distributed through mass market, baby super stores, specialty, food, drug, independent and ecommerce retailers worldwide.
The Company's current operating subsidiaries consist of: Kids Line, LLC; LaJobi, Inc.; Sassy, Inc.; and CoCaLo, Inc. Through these wholly-owned subsidiaries, the Company designs, manufactures (through third parties) and markets branded infant and juvenile products in a number of complementary categories including, among others: infant bedding and related nursery accessories and décor and nursery appliances (Kids Line® and CoCaLo®); nursery furniture and related products (LaJobi®); and developmental toys and feeding, bath and baby care items with features that address the various stages of an infant's early years, including the Kokopax® line of baby gear products (Sassy®). In addition to the Company's branded products, the Company also markets certain categories of products under various licenses, including Carter's®, Disney®, Graco® and Serta®. Additional information about the Company is available at kidbrands.com.
Note: This press release contains certain forward-looking statements. Additional written and oral forward-looking statements may be made by the Company from time to time in Securities and Exchange Commission (SEC) filings and otherwise. The Private Securities Litigation Reform Act of 1995 provides a safe-harbor for forward-looking statements. These statements may be identified by the use of forward-looking words or phrases, including, but not limited to, "believe", "plan", "anticipate", "may", "potential", "should", "will", "would", "could", "might", "possible", "contemplate", "continue", "expect", "intend", and/or "seek". The Company cautions readers that results predicted by forward-looking statements, including, without limitation, those relating to our future business prospects, revenues, working capital, liquidity, capital needs, interest costs and income are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. Specific risks and uncertainties include, but are not limited to, those set forth under Part I, Item 1A, Risk Factors, of the Company's most recent Annual Report on Form 10-K and any subsequent filings with the SEC. Forward-looking statements speak only as of the date the statements are made. Except as required under the federal securities laws and rules and regulations of the SEC, the Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.