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Dallas-based retail store amends secured credit facility
16 Jul '09
2 min read
Neiman Marcus Inc announces that it has entered into an amended and restated senior secured revolving credit agreement which has a tenure of 3.5 years and will expire January 15, 2013. The maximum committed borrowing capacity of the amended facility remains at $600 million.
The facility also provides an uncommitted accordion feature that allows the Company to request the lenders to provide additional capacity in either the form of increased revolving commitments or incremental term loans, subject to a total maximum facility of $800 million.
“We are very pleased with the outcome of our process and the strong level of support we received from this leading group of bank institutions,” said Jim Skinner, Executive Vice President and Chief Financial Officer. “We believe our success in maintaining our facility size is evidence of the confidence that our banking group has in our company and our ability to effectively manage our business during this challenging economic period. This facility, combined with our current cash balance in excess of $250 million, provides us with ample liquidity to support the growth of our company.”
Banc of America Securities LLC, Wells Fargo Retail Finance, LLC, JP Morgan Securities LLC and Regions Business Capital Corporation are joint lead arrangers and joint bookrunning managers for the transaction. Other major lending institutions participated in the agreement including Goldman Sachs, Barclays, Credit Suisse, PNC and UBS.
The amendment revises and adds certain terms and covenants of the existing credit facility. While the borrowing capacity formula based on eligible collateral remains substantially the same, the new interest rates vary with usage and are LIBOR plus 4.25% through October 1, 2010 and in the range of LIBOR plus 4.0% - 4.50% thereafter. The credit facility is available for general corporate purposes and the issuance of letters of credit.
The facility also provides an uncommitted accordion feature that allows the Company to request the lenders to provide additional capacity in either the form of increased revolving commitments or incremental term loans, subject to a total maximum facility of $800 million.
“We are very pleased with the outcome of our process and the strong level of support we received from this leading group of bank institutions,” said Jim Skinner, Executive Vice President and Chief Financial Officer. “We believe our success in maintaining our facility size is evidence of the confidence that our banking group has in our company and our ability to effectively manage our business during this challenging economic period. This facility, combined with our current cash balance in excess of $250 million, provides us with ample liquidity to support the growth of our company.”
Banc of America Securities LLC, Wells Fargo Retail Finance, LLC, JP Morgan Securities LLC and Regions Business Capital Corporation are joint lead arrangers and joint bookrunning managers for the transaction. Other major lending institutions participated in the agreement including Goldman Sachs, Barclays, Credit Suisse, PNC and UBS.
The amendment revises and adds certain terms and covenants of the existing credit facility. While the borrowing capacity formula based on eligible collateral remains substantially the same, the new interest rates vary with usage and are LIBOR plus 4.25% through October 1, 2010 and in the range of LIBOR plus 4.0% - 4.50% thereafter. The credit facility is available for general corporate purposes and the issuance of letters of credit.
Neiman Marcus Inc
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