FAO to Emerge From Chapter 11
The plan becomes effective this month.
FAO, King of Prussia, PA, got a commitment for up to $77 million in financing to fund operations once the plan takes effect. The financing includes a $67 million revolving credit facility provided by a group of banks led by Fleet Retail Finance Inc., and a $10 million term loan by Back Bay Capital Funding LLC.
The company also received agreements for the purchase of $30 million in convertible preferred stock from a group of investors led by Kayne Anderson Capital Advisors L.P.
The company completed its Chapter 11 reorganization in 83 days.