Enesco Enters Sale, Financing Agreements
By Staff -- Gifts and Dec, 1/23/2007 12:34:00 PM
Itasca, IL — Enesco Group and an affiliate of private investment partnership Tinicum Capital Partners II LP entered a definitive asset purchase agreement. Under the terms of the agreement, Tinicum will purchase Enesco's business, operations and substantially all of the company's assets. The purchase price will be paid by repaying Enesco's secured debt, forgiving obligations owed to Tinicum or its affiliates, assuming some of Enesco's liabilities and paying $600,000 in cash. Enesco stockholders will not receive any payment.
The U.S. Bankruptcy Court will consider the proposed Tinicum transaction at a hearing on February 15. The court also gave interim approval to Enesco's Debtor In Possession financing arrangement with Wells Fargo Foothill, part of Wells Fargo & Company. The financing arrangement, in which Tinicum purchased a 100 percent participation interest, provides for a revolving loan facility of up to $65 million, which will be used to pay off Enesco's existing senior secured debt and provide working capital for the period prior to the closing of the sale. Final approval of the facility is expected to come at a hearing before the court on February 7.
For more on the deal, see Chapter 11 for Enesco.
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