Downturn in furniture, mattress business pushes Leggett to amend revolving credit agreement

CARTHAGE, Mo. – Leggett & Platt has amended its revolving credit agreement to provide additional borrowing capacity and flexibility during the residential home furnishings and mattress’ weak environment.

According to the company, the new agreement increased its leverage ratio from 3.5 times to 4.0 times trailing 12-months adjusted EBIDTA through June 30, 2025. After Sept. 30, 2025, the leverage ratio will revert to 3.5 times and will remain at the until the facility matures Sept. 30, 2026.

For the year ended Dec. 31, 2023, Leggett posted a loss of $136.8 million and an 8.6% decline in year-over-year sales.

“The amended credit agreement reflects our commitment to maintaining our long-held financial strength,” said Mitch Dolloff, president and CEO. “We are confident that the amended agreement will provide us with ample liquidity and flexibility as we manage near-term weak demand in residential end markets.”

Dolloff said Leggett’s board and management team are also reviewing its capital allocations, including how much cash is allocated to its dividend program.

Earlier this year, the company announced a restructuring that included eliminating up to 1,100 jobs and closing more than 15 factories.

See also:

Credit to Source link

Leave a Comment