CIT Commercial Services Provides Up to $48 Million in Financing to Crown Crafts
Rhea-AI Summary
First Citizens Bank's CIT Commercial Services unit has provided up to $48 million in financing to Crown Crafts Inc. (NASDAQ-CM: CRWS), a major producer of infant and toddler bedding and accessories. The financing package includes a $5 million upsize to a $40 million committed ABL revolving line of credit and an $8 million term loan. Crown Crafts used part of this financing to acquire the assets of Baby Boom Consumer Products, expanding its presence in the toddler bedding segment and adding diaper bags to its product line. This financing deal extends CIT's 20-year-plus relationship with Crown Crafts, supporting the company's growth strategy.
Positive
- Secured up to $48 million in financing from CIT Commercial Services
- Acquired assets of Baby Boom Consumer Products, expanding product portfolio
- Increased committed ABL revolving line of credit by $5 million
- Obtained $8 million term loan
- Extended long-term relationship with CIT Commercial Services
Negative
- None.
News Market Reaction – FCNCA
In the trading session that priced this news, FCNCA gained 1.56%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
The financing, which included a
"The addition of Baby Boom's portfolio of branded and licensed products enhances our presence in the toddler bedding segment, and the addition of diaper bags expands our offerings to our customers," said Olivia Elliott, Chief Executive Officer of Crown Crafts. "We appreciated the expertise and flexibility of the CIT Commercial Services team in arranging this financing to help us achieve our business goals."
"We are excited to extend our 20-year-plus relationship with Crown Crafts by providing this latest financing," said Mike Hudgens, president of CIT Commercial Services. "Their acquisition of the assets of Baby Boom Consumer Products is another milestone in Crown Crafts' growth trajectory and we look forward to continuing to serve their financing needs in the future."
CIT Commercial Services, a subsidiary of First Citizens Bank, is one of the nation's leading providers of factoring, credit protection, accounts receivable management, supply chain finance and lending services to domestic middle market companies.
About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in
About Crown Crafts, Inc.
Crown Crafts, Inc. designs, markets and distributes infant, toddler and juvenile consumer products. Founded in 1957, Crown Crafts is one of America's largest producers of infant bedding, toddler bedding, bibs, toys and disposable products. The Company operates through its two wholly owned subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc., which market a variety of infant, toddler and juvenile products under Company-owned trademarks, as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores and juvenile specialty stores. For more information, visit the Company's website at www.crowncrafts.com.
MEDIA RELATIONS:
John M. Moran
212-461-5507
john.moran2@firstcitizens.com
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SOURCE First Citizens Bank