Cherokee Brands, the owner of the Hi-Tec Sports brand, has signed a new three-year financing agreement for $40 million with Gordon Brother Finance. Giving the company a much-needed cash infusion of $5.5 million, Cherokee has also increased the subordinated interest in its former credit facility by $2.0 million to $13.5 million. As part of the deal, the company has issued warrants for 2.8 million shares at an exercise price of 48 cents a share. Cherokee has been trying to renegotiate its debt after operational problems and a $35 million goodwill writedown placed it last year in breach of its financial covenants.
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