Samsonite says increases credit facility for acquisitions
HONG KONG, July 3 |
HONG KONG, July 3 (Reuters) - Samsonite International S.A. , the world's biggest maker of luggage, said it has increased a revolving credit facility to $300 million from $100 million to help fund potential acquisitions.
"While Samsonite's focus has been on organic growth, we have continued to look at acquisition opportunities," chairman and CEO Tim Parker said in a statement on Tuesday.
The firm, which has the option of boosting the facility by an extra $100 million, did not give any details on potential takeovers.
HSBC Bank USA is leading a syndicate of global banks in providing the three-year facility, which could be extended by a year at the request of Samsonite and with the permission of lenders.
Under a rolling credit facility, the borrower pays a commitment fee and then draws funds when it needs them.
Samsonite, based in Luxembourg and listed in Hong Kong, had said in May that it was open to the possibility of acquiring brands in Europe or North America.
The suitcase maker last month replaced the handles on its American Tourister brand's Tokyo Chic inventory, amid claims some products contained high levels of chemicals that may be carcinogenic, but said the recall would not have any material impact on the company.
Shares of Samsonite rose 1.9 percent to their highest in nearly two weeks on Tuesday. They were up 1.4 percent as at 0305 GMT, against a 1.6 percent gain in the benchmark index. (Reporting by Donny Kwok; Editing by Joseph Radford)
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