Saks extends maturity date on revolving credit

AP News
Posted: Nov 24, 2009 3:49 PM

Saks Inc. said Tuesday it has extended the maturity date of its revolving credit facility, which has a borrowing capacity of $500 million, and changed certain terms of the loan.

The new interest rate varies in the range of Libor plus 3.5 percent to 4 percent. And if the available credit falls below $87.5 million, the company will have to pay a fixed charge coverage ratio of at least 1-to-1.

The new maturity date is Nov. 22, 2013.

Wells Fargo Retail Finance, a unit of Wells Fargo & Co.; UBS Securities LLC, Regions Business Capital and GE Capital Markets Inc. were the lead arrangers and bookrunning managers.

Saks said it has taken other steps to strengthen its capital structure, such as its issue of $120 million in convertible notes in May and a $100 million stock offering last month. Proceeds from those offerings were used to pay back debt under its revolving facility.

As of Oct. 31, Saks said it had no direct outstanding debt on its revolving credit facility.

Shares of Saks, based in New York, fell 10 cents to $6.40 in late afternoon trading.