USA: Galaxy Foods Company Expands Working Capital Facility With FINOVA Capital Corporation to $13 Million to Fund Sales Growth
Galaxy Foods Company (AMEX:GXY), a leading producer of nutritional, health-promoting dairy and dairy related alternatives for the retail, foodservice and industrial markets, today announced that it has expanded its existing credit facility with FINOVA Capital Corporation to $13 million under a three-year working capital facility agreement, floating at 10 basis points below the prime interest rate. Galaxy Foods will also reduce the interest rate on its existing $3.9 million subordinated debt facility with FINOVA Mezzanine Capital, Inc. from 13.5% to 11.5%, saving the Company approximately $80,000 in debt service on this facility annually. Galaxy Foods expects the new facility to fund its working capital needs to support its growth up to $100 million in sales. Frank Monzo, V.P. & Portfolio Manager of FINOVA's Corporate Finance division, said: "Galaxy is an industry leader in the healthy food sector with an impressive, growing product line, unique proprietary manufacturing methods and a management team focused on quality and growth. FINOVA is pleased to support the Company's next phase of growth with this facility." Keith A. Ewing, Chief Financial Officer of Galaxy Foods, stated, "In line with our business plan, Galaxy is implementing programs to eliminate production capacity constraints, expand brand recognition, and enhance product distribution. Our agreement with FINOVA will allow Galaxy to continue to grow and develop our business at terms that are favorable to the Company."
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