NEW YORK -- Galey & Lord Inc., a textile company, announced that it has refinanced a bank term loan and revolving line of credit.

The new agreements with CIT Group/Business Credit Inc. and Bank of New York Commercial Corp. provide for a five-year revolving line of credit of up to $63 million and a five-year term loan of $36.5 million.

The refinancing reduced the interest cost on the term loan from the prime rate plus 1.5 percentage point to prime plus 0.5 percentage point. Interest on the revolver dropped from prime plus 1 percentage point to prime plus 0.5 percentage point.

Galey & Lord, based in Greensboro, N.C., recently completed an initial public offering of 2.9 million common shares at $10 each. In conjunction with the offering, it retired all its 14% senior subordinated notes and all senior preferred stock.

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