|
RAPAPORT... Saks Incorporated amended its credit facility, increasing the maximum availability to $600 million from $500 million and extending the maturity date two years to March 28, 2018. The amendment favorably revises certain terms of the existing revolving credit facility, including the interest rates and unused line fees. The new interest rates vary with usage and are in the range of LIBOR plus 1.5 percent to 2 percent compared with LIBOR plus 2 percent to 2.5 percent previously. The unused line fees also vary with usage and decrease to 0.25 percent to 0.375 percent per year from 0.375 percent to 0.5 percent per year previously. The amendment also increases the advance rate for eligible inventory that is included in the borrowing capacity formula to 90 percent from 85 percent. Kevin Wills, the chief financial officer of Saks, said, “We are very pleased to complete the amendment to our revolving credit facility. Over the last few years, we have taken a number of actions to strengthen our capital structure and our overall financial flexibility and this amendment is a continuation of that process. The amendment extends the facility’s maturity to five years and includes more favorable terms. We appreciate the continued support of our bank group and their participation in this enhanced facility.”
|