JACKSONVILLE, Fla., Sept. 18, 2018 (GLOBE NEWSWIRE) Stein Mart, Inc. (NASDAQ: SMRT) (the “Company”) announced today that it has extended and amended its existing revolving credit agreement with Wells Fargo Bank (Wells Fargo) and its term loan agreement with Gordon Brothers Finance Company (GBF).  These agreements are coordinated through an intercreditor agreement and provide for combined borrowing availability of $275 million. 

Key features of the amended agreements include:

• Extending the terms to September 18, 2023 from the previous maturities of February 3, 2020;
• Removing cash dominion with it applying in the future only if excess availability is less than 12.5% of the Loan Cap;
• Increasing the Wells Fargo revolving borrowing limit to $240 million from the previous $225 million with an increase in the inventory advance rate;
• Decreasing the GBF term loan amount from $50 million to $35 million and lowering the borrowing rate by 25 basis points; and
• Administrative improvements that will enhance liquidity.  

The impact of the new agreements will decrease annual borrowing costs by approximately $1 million and will result in all loan amounts outstanding being classified as long-term obligations. Borrowings under the amended agreements remain available for working capital and general corporate purposes, as well as to support the Company’s letter of credit requirements. 

“Our improving results reflect the progress we are making with our strategic initiatives and provided us the opportunity to make positive changes to our credit agreements. We appreciate the support of our lending partners, Wells Fargo and GBF, and their collaboration to successfully complete these amendments,” said Greg Kleffner, Chief Financial Officer. “The changes announced today provide additional flexibility which will aid liquidity and is another step in a positive direction for Stein Mart.” 

About Stein Mart
Stein Mart, Inc. is a national specialty off-price retailer offering designer and name-brand fashion apparel, home décor, accessories and shoes at everyday discount prices. Stein Mart provides real value that customers will love every day both in stores and online. The Company currently operates 289 stores across 30 states.