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Destination Maternity announces new credit facility
02
Nov '12
Destination Maternity Corporation, the world's leading maternity apparel retailer, announced that it has entered into a new $61 million revolving credit facility with Wells Fargo Bank, N.A. 

The new credit facility replaces the Company's $55 million revolving credit facility with Bank of America, N.A., which was due to mature on January 13, 2013.  The Company also announced that, as of November 1, 2012, it has repaid the remaining principal amount ($13.4 million) of its senior secured Term Loan, which was due to mature on March 13, 2013.

Ed Krell, Chief Executive Officer of Destination Maternity Corporation, noted, "We are very pleased to announce our new credit facility with Wells Fargo and the repayment of the remaining balance of our Term Loan (which had an original principal balance of $90 million in March 2007). 

The repayment of our Term Loan completes a dramatic decrease in our financial leverage which we have accomplished over the past several years.  Giving effect to this Term Loan repayment, over the past six years, our total debt has decreased from $118 million to $2 million, and our annual interest expense has decreased from $15 million to less than $1 million. 

In addition, our new credit facility provides us with continued significant financial and operating flexibility as we continue to execute on our strategic plan."

Destination Maternity Corporation is the world's largest designer and retailer of maternity apparel.  In the United States and Canada, as of September 30, 2012, Destination Maternity operates 2,008 retail locations, including 625 stores, predominantly under the tradenames Motherhood Maternity, A Pea in the Pod, and Destination Maternity, and 1,383 leased department locations, and sells on the web through its DestinationMaternity.com and brand-specific websites.

Destination Maternity Corporation

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