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Saks announces amendment of revolving credit facility

30 Mar '11

2 min read

Retailer Saks Incorporated announced that it has entered into an amendment to its existing revolving credit agreement. The amendment extends the maturity date of this facility to March 29, 2016 from November 23, 2013 previously. The maximum committed borrowing capacity of the amended facility remains at $500 million.

Kevin Wills, Executive Vice President and Chief Financial Officer of the Company, noted, “We are very pleased to complete this amendment to our revolving credit facility, which further strengthens our capital structure and overall financial flexibility. We appreciate the response from and support of our lenders in making these enhancements to our facility.”

The Company currently has no direct outstanding borrowings on the revolving credit facility.

The amendment favorably revises certain terms of the existing revolving credit facility. The new interest rates vary with usage and are in the range of LIBOR plus 2.0% to 2.5% (LIBOR plus 3.5% to 4.0% previously), and the facility is subject to no financial covenants unless the availability falls below $62.5 million ($87.5 million previously).

As a result of the amendment, management now estimates that 2011 interest expense will total approximately $50 million, a modest reduction from the previous estimate of $51 million to $53 million.

Saks Incorporated operates 46 Saks Fifth Avenue stores, 57 Saks OFF 5TH stores.

Saks Incorporated

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