Ladies' wear manufacturer and retailer Movie Star Inc has refinanced its subordinated debt and senior notes with a three-year revolving credit facility. The new $30 million credit facility was negotiated with the company's current lender, the banking firm of Rosenthal & Rosenthal Inc. The proceeds from borrowings under the new credit facility will replace Movie Star's existing $18 million credit facility and be used to repay the remaining balance on the company's 12.875 per cent subordinated debt of $4,180,000 and 8 per cent senior notes of $2,283,000.

"We are pleased that we were able to replace our outstanding subordinated debt and senior notes at much more favorable rates with our existing short term lender and without the expense of engaging costly outside consultants," said Thomas Rende, Movie Star's chief financial officer.

"This new credit facility which significantly reduces our interest costs, provides funding necessary for working capital, letters of credit and other operating needs and eliminates any concern about principal payments on the subordinated debt and senior notes that are coming due in September and October. Now that our debt has been refinanced we can devote our full attention entirely to growing our business and improving our operating results."

The company also announced Michael A Salberg has been appointed as a director and will serve on the audit committee of the board. Mr Salberg has practiced law for the past 24 years and is currently a partner in the New York law firm of Graubard Miller.