Home / Knowledge / News / Apparel/Garments / CHRS secures proactively addressed revolving credit facility of $225 mn
CHRS secures proactively addressed revolving credit facility of $225 mn
03
Aug '09
Charming Shoppes Inc, a leading multi-brand apparel retailer specializing in women's plus apparel, announced it has entered into a three-year loan agreement for a new senior secured revolving credit facility in the amount of $225 million. Wells Fargo Retail Finance and Bank of America Merrill Lynch were joint lead arrangers and joint book runners for the facility.

Also participating as members of the Company's bank lending group were GMAC Commercial Finance, JPMorgan Chase, U.S. Bank and Barclays Bank. The credit facility provides committed revolving funding through July 2012, and replaces the Company's $375 million revolving credit facility.

Jim Fogarty, President and Chief Executive Officer of Charming Shoppes, Inc. commented, "We are pleased to have proactively and successfully addressed the maturity of our revolving credit facility. Maintaining strong liquidity -- our revolver availability and our cash position -- is a critical priority for us, and even more critical in today's funding environment. This financing and our strong liquidity allow us to continue our work focusing on our customer and improving our business."

The amount of credit that is available from time to time under the agreement is determined as a percentage of the value of eligible inventory, accounts receivable and cash, as reduced by certain reserves. In addition, the new agreement includes an option whereby the Company may increase its maximum credit up to $300 million, based on certain terms and conditions. The credit facility may be used for general corporate purposes, and provides that up to $100 million of the $225 million may be used for letters of credit.

Borrowings under the new agreement will generally accrue interest at a margin ranging from 3.75% to 4.25% over the London Interbank Offered Rate ("LIBOR"). As long as the excess availability under the new facility is at least $40 million, the Company will not be subject to financial covenants under the terms of the agreement. The Company does not currently anticipate borrowing under the facility; however, were it to borrow at the present time, it is expected that borrowings would be at the lowest end of the margin range over LIBOR.

Eric M. Specter, Executive Vice President and Chief Financial Officer of Charming Shoppes, Inc. commented, "Over the last year, we have actively sought to simplify our business through the divestiture of our non-core misses apparel catalogs and the closure of figure Magazine, shoetrader.com and the Lane Bryant Woman catalog. Given these activities, we have reduced the size of our new revolving credit facility to one that is appropriate to our current business model, and we are very pleased to continue our banking relationships with Wells Fargo, Bank of America Merrill Lynch, and each of the other banks in this transaction."

At May 2, 2009, Charming Shoppes Inc operated 2,272 retail stores in 48 states under the names LANE BRYANT, LANE BRYANT OUTLET, FASHION BUG, FASHION BUG PLUS, CATHERINES PLUS SIZES, and PETITE SOPHISTICATE OUTLET.

Charming Shoppes Inc


Must ReadView All

Coats acquires yarn manufacturer Patrick Yarn Mill

Textiles | On 12th Dec 2017

Coats acquires yarn manufacturer Patrick Yarn Mill

Coats, the world’s leading industrial thread manufacturer, has...

India’s garment imports from Bangladesh up 56% post-GST

Apparel/Garments | On 12th Dec 2017

India’s garment imports from Bangladesh up 56% post-GST

India has imported $87.4 million worth of readymade garments from...

Courtesy: Badger Sportswear

Apparel/Garments | On 12th Dec 2017

Badger Sportswear acquires Alleson Athletic

Badger Sportswear, a leading manufacturer of athletic apparel and...

Interviews View All

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search