STOCK TITAN

CIT Commercial Services Provides Up to $48 Million in Financing to Crown Crafts

(Moderate)
(Very Positive)
Tags

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.

Loading...
Loading translation...

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

+1.56%
+1.56% Session move

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.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google

NEW YORK, July 30, 2024 /PRNewswire/ -- First Citizens Bank today announced that its CIT Commercial Services unit provided up to $48 million in financing to Crown Crafts Inc. (NASDAQ-CM: CRWS), one of America's largest producers of infant bedding, toddler bedding, bibs, toys and disposable products.

The financing, which included a $5 million upsize to a $40 million committed ABL revolving line of credit and a $8 million term loan, was used in part by Crown Crafts to facilitate its recent acquisition of the assets of Baby Boom Consumer Products, a leading provider in the toddler bedding and diaper bag categories. In addition to the financing provided, Crown Crafts also utilizes the industry-leading factoring services provided by CIT.

"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 Raleigh, N.C., First Citizens has built a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens offers an array of general banking services including a network of more than 500 branches and offices in 30 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; innovation banking serving businesses at every stage; and a nationwide direct bank. Parent company First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $200 billion in assets and a member of the Fortune 500™. Discover more at firstcitizens.com.

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

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/cit-commercial-services-provides-up-to-48-million-in-financing-to-crown-crafts-302208800.html

SOURCE First Citizens Bank

FAQ

What financing did Crown Crafts (FCNCA) receive from CIT Commercial Services?

Crown Crafts (FCNCA) received up to $48 million in financing from CIT Commercial Services, including a $5 million upsize to a $40 million committed ABL revolving line of credit and an $8 million term loan.

How did Crown Crafts (FCNCA) use the financing from CIT Commercial Services?

Crown Crafts (FCNCA) used part of the 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.

What company did Crown Crafts (FCNCA) acquire with the new financing?

Crown Crafts (FCNCA) acquired the assets of Baby Boom Consumer Products, a leading provider in the toddler bedding and diaper bag categories.

How long has Crown Crafts (FCNCA) been in a relationship with CIT Commercial Services?

Crown Crafts (FCNCA) has been in a relationship with CIT Commercial Services for over 20 years, as mentioned in the press release.