Home appliance maker Capital Home Appliances to close amid $15M in debt

Capital Home appliances announced today that it has entered into a definitive agreement with the Federal Reserve Bank of New York to close the $15 million in unsecured indebtedness that it owes on its $8.5 billion line of credit to the bank.The transaction is the latest chapter in a $50 billion capital improvement plan Capital…

Published by admin inJuly 18, 2021
Tags: , ,

Capital Home appliances announced today that it has entered into a definitive agreement with the Federal Reserve Bank of New York to close the $15 million in unsecured indebtedness that it owes on its $8.5 billion line of credit to the bank.

The transaction is the latest chapter in a $50 billion capital improvement plan Capital Home is pursuing that includes a sale of some of its U.S. brands, a $10 billion investment in an international network of manufacturing plants, and a commitment to buy back $50 million of its shares.

In a statement, the company said that it will not issue any new shares and will continue to pursue the capital improvement strategy.

The transaction was announced during a conference call with analysts that included Capital Chief Executive Officer Stephen Mancuso and Chief Financial Officer Scott Gagnon.

Capital said it would invest in new manufacturing plants in the United States and Europe to reduce the cost of its products and to increase efficiency.

Capital also plans to buy up to 1,000 of its home appliances in 2019.

In addition, it said it will use $2.2 billion in cash to pay down its $3.4 billion in debt and to refinance its loans.

Capital Home’s debt was issued in November 2012 and it owes about $13.7 million to the Fed.

It has been paying the bank about $500,000 in interest each month since then.

The company is expected to report fiscal 2018 earnings on Wednesday.