Dixie Group Announces New Senior Credit Facility

Dalton, GA, November 3, 2020-The Dixie Group announced the successful negotiation of a $75 million, five year, senior secured revolving credit facility with Fifth Third Bank National Association, providing for borrowing based on percentages of values of the company's accounts receivable and inventory, and secured by a first priority interest in the company's accounts receivable and inventory. Maturing five years from the date of close, the Fifth Third facility will replace the company's current secured credit facility with Wells Fargo Finance scheduled to mature in 2021. Availability under the new arrangement will be approximately $45 million as of October 30, 2020.

The company also announced entry into two additional credit facilities: a $10 million principal amount 25-year term loan with AmeriState Bank, secured by a first mortgage on the company's Atmore, Alabama and Roanoke, Alabama facilities, and a $15 million 10-year loan with Greater Nevada Credit Union secured by the company's machinery and equipment, and a second lien on the Atmore and Roanoke Facilities. The AmeriState loan bears straight line amortization over the 25-year term, and the Greater Nevada Credit Union loan amortizes straight line over the last seven years of its ten year term.

Together, the Fifth Third Facility and the AmeriState and Greater Nevada Credit Union loans will serve to consolidate and replace most of the Company's existing credit arrangements.