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Eddie Bauer declares amendment of certain provisions

24
Apr '06

Leading lifestyle retailer Eddie Bauer Holdings Inc announced it has entered into an amendment and waiver of certain provisions under its $300 million senior secured term loan agreement, with JPMorgan Chase Bank as administrative agent, and has obtained a waiver of certain provisions under its senior secured revolving credit facility, with Bank of America as agent.

Eddie Bauer anticipates that the term loan amendments relating primarily to financial covenant ratios and operational covenants (including capital expenditures, permitted collateral sales and store openings/closings) will provide it with additional flexibility to pursue its turnaround strategy.

In addition, Eddie Bauer obtained waivers under both the term loan and the revolving credit facility on several other matters relating primarily to previously due financial and business reports and, in connection with name changes of two subsidiaries, the perfection of security interests in collateral and notice requirements.

As a result of the amendment to the term loan, interest rate spreads under the term loan will be adjusted in varying amounts over the life of the loan.

Established in 1920 in Seattle, Eddie Bauer is a specialty retailer that sells casual sportswear and accessories for the "modern outdoor lifestyle." Eddie Bauer believes the Eddie Bauer brand is a nationally recognized brand that stands for high quality, innovation, style and customer service.

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