ALJ Regional Holdings Inc. (fka ALJJ)

[Enterprising Investor]

ALJ Announces Refinance of Faneuil's Note Payable, Senior Credit Facility and ALJ's Senior Debt and Carpets new Senior Credit Facility (10/02/14)

NEW YORK, Oct.2, 2014 /PRNewswire/ -- ALJ Regional Holdings, Inc. (Pink Sheets: ALJJ) ("ALJ") announced that its operating subsidiary Faneuil, Inc. ("Faneuil") has refinanced its $25 million note payable to Harland Clarke, Inc. and its $5 million Senior credit facility. Faneuil had $21.6 million inclusive of accrued interest remaining on the note payable, and at closing paid down $2.6 million from cash on hand, leaving $19 million, which was refinanced under a ("Term Loan") with M&T Bank, Inc. ("M&T"). The $19 million term loan amortizes over a period of 60 months at $316,667 per month plus accrued interest at a rate of Libor plus 3.75%, declining to Libor plus 2.50% upon obtaining certain ratios. The loan with Harland Clarke was scheduled to accrue interest over the next twelve months at a rate of 7.5% and was due in full in October 2015. Faneuil also refinanced its $5 million Senior Credit Facility ("Revolver") with M&T, which has a two-year term and accrued interest at a rate of Libor plus 2.5%. The Term Loan and Revolver are guaranteed by Faneuil and secured by a lien on all of the corporate assets of Faneuil.

On September 30, 2014, ALJ Regional Holdings, Inc. ("ALJ") refinanced its related party note payable of $2 million due to Libra Securities with a $2 million Term Loan with M&T ("ALJ Term Loan"). The ALJ Term Loan amortizes over a period of 30 months at $66,667 per month plus accrued interest at a rate of Libor plus 3.75%. The ALJ Term Loan is secured by a first lien on all corporate assets owned by ALJ. The ALJ Term Loan is guaranteed by Faneuil and secured by a lien on all of the corporate assets of Faneuil. The original related party note payable accrued interest at a rate of 10% and was due in full on April 2019.

On September 30, 2014, Carpets N' More, Inc. ("Carpets") executed a $3 million Senior Credit Facility with M&T Bank ("Carpets Revolver"). The Carpets Revolver carries a term of 24 months and accrues interest at a rate of Libor plus 4.00%. The Carpets Revolver is secured by a first lien on all corporate assets of Carpets and its subsidiaries. The Carpets Revolver is guaranteed by Faneuil and secured by a lien on all of the corporate assets of Faneuil.

Jess Ravich, the Executive Chairman of ALJ, stated, "M&T provided us with an excellent suite of credit facilities for each of our entities, assisting us in lowering our interest rates on our term notes and providing us growth capital to expand our businesses."

About ALJ Regional Holdings, Inc.

ALJ Regional Holdings, Inc. is the parent company of Faneuil, Inc., a leading provider of outsourcing and co-sourced services to both commercial and government entities in the healthcare, utility, toll and transportation industries and Floors-N-More, LLC, dba Carpets N' More, one of the largest floor covering retailers in Las Vegas and a provider of multiple finishing products for commercial, retail and home builder markets including all types of flooring, countertops, cabinets, window coverings and garage/closet organizers, with 5 retail locations.

http://www.prnewswire.com/news-releases/alj-announces-refinance-of-faneuils-note-payable-senior-credit-facility-and-aljs-senior-debt-and-carpets-new-senior-credit-facility-277878051.html