Remington Products signed a $110 million deal with Fleet Capital, replacing J.P. Morgan as the lead on its $95 million line of credit due to expire next June. Fleet won the lead after J.P. Morgan bid for the new deal. Al Castaldi, cfo, explained that the company had outgrown its $70 million deal and the $25 million add-on it secured last fall. He said refinancing was cheaper than going after another add-on. "We're a very seasonal business doing much of our business around Christmas and we had to put in something for the fourth quarter," he said. "Instead of another costly Band-Aid, we redid the whole thing." The Bridgeport, Conn.-based company sells various men's grooming products, namely shavers.
Castaldi said Fleet, which had been part of the original syndicate, had been supportive of the company during its turnaround in 1997. When the company considered three candidates for the new deal, Fleet stood out because of its prior support. "Remington had a recapitalization starting in 1996 and we had a tough time getting out of the box," Castaldi said, adding that a new management team was brought on in early 1997. "Fleet was the leader when it came to new money. They stepped over and above everyone else. When we amended the covenants, they offered their support." Castaldi said the deal was oversubscribed, but the company chose to cut it back. Remington's sales were roughly $365 million last year, compared to $242 million in 1996. EBITDA was up to $44 million last year, compared to $18 million in 1996.