The Dixie Group Completes Financing

Chattanooga, TN, Mar. 17--The Dixie Group issued $37.0 million of senior term notes, due May 2007, amended its senior credit facility, and settled the $50.0 million obligation that was due in April to the former shareholders of Fabrica. The amended senior credit facility provides revolving credit of up to $90 million, a $38.4 million term loan, and additional borrowing availability under the company's borrowing base. After completing the transactions, including payment of the Fabrica obligation, the company's unused borrowing capacity under its new credit arrangements was approximately $19.4 million. "Completing this financing improves our financial flexibility and will allow us to devote more of our energy to our operations, " Dixie's chairman and CEO Daniel K. Frierson said. "While we will continue to reduce debt, we now can focus more intently on profitably growing our business."