Johnson Outdoors has refinanced and restructured its debt, which should...

Johnson Outdoors has refinanced and restructured its debt, which should lower its borrowing costs by 40 percent next year compared with 2009. The terms include total debt availability of $84.9 million through two asset-backed credit facilities, and a revolving credit facility for up to $69 million that matures in 2012 with availability based on eligible account receivables and inventory – this is reduced to $46 million from mid-July to mid-November to account for the seasonal nature of the company’s business. There is also a long-term facility providing up to $15.9 million maturing in 15 to 25 years guaranteed by a government program. Both of the facilities have floating interest rates. The company is also working on a loan agreement related to its Canadian assets expected to be completed in the next month; this would provide $6.0 million in additional debt availability through a revolving credit facility. This will put its total combined revolving credit facilities at $75 million ($50 million from mid-July to mid-November), for a total debt availability of $90.9 million. The costs of Johnson’s debts in 2009 will total about $5.9 million; this will shrink to about $3.3 million in 2010, not including closing costs of $1.2 million.