HOTJ Secures Additional Financing
October 17, 07
Jewelry firm House of Taylor Jewelry (HOTJ) announced Monday that it has completed several initiatives that will serve to strengthen its capital structure. It has secured a $30 million credit facility through New Stream Capital, which consists of a three-year, $5 million term loan and a $25 million revolving line of credit.
HOTJ has also completed an equity financing and receiving gross proceeds of approximately $5.8 million through the issuance of approximately 6.1 million shares of common stock. The term of the warrants, each of which allows the holder to purchase one share of common stock at an exercise price of $0.95 per share, is seven years.
Lastly, the company has repaid the balance of its senior secured convertible notes, issued in May 2006, for approximately $9.6 million, using proceeds from the equity financing and borrowings from the credit facility.
"Completing these initiatives (…) substantially increase the company's financial flexibility and provide us with the opportunity to effectively execute on our long-term growth strategies," commented Jack Abramov, president and CEO.
"The credit facility and equity investment position us to meet demand and ramp up production and distribution as we continue our strategic expansion of the Elizabeth Taylor and Kathy Ireland brands,” he added, “particularly in our Kathy Ireland bridal and diamond essential categories."
HOTJ also announced that Bob Rankin, the firm’s CFO, has assumed the additional executive role of chief operating officer.