Bon-Ton Stores Inc. said Wednesday it has agreed with lenders to take a $675 million 3.5-year senior secured asset-based credit facility to replace its existing $800 million revolving credit facility due to mature in March 2011.
The company, based in York, Pa., expects to close on the new facility early next month. Chief Financial Officer Keith Plowman said in a statement it would give the company greater liquidity.
Bon-Tons operates department stores under the names Bergner's, Boston Store, Herberger's, Younkers and others in the Northeast and Midwest.
Bank of America NA is administrative agent of the new facility. Bank of America Merrill Lynch, GE Capital Markets Inc. and Wells Fargo Securities LLC are joint lead arrangers.
Bon-Ton also said it has closed on a $75 million second-lien term loan, which will mature on Nov. 18, 2013. The company will use part of the loan to pay down part of outstanding debt.
Shares fell 3 cents to $10.69 in after-hours trading Wednesday after closing at $10.72, up 11 cents from a day earlier.