Dillard's retired some 6.3% notes during fiscal first quarter, redeemed preferred securities

New York, May 13 - Dillard's Inc. (B2/BB) said that during its fiscal first quarter ended May 1, it retired $2.6 million of its 6.3% notes due 2008 (the company had originally issued $100 million of the notes).

Dillard's, a Little Rock, Ark.-based retailer, also said that the company redeemed $331.6 million preferred securities on Feb. 2 as planned, with $100 million borrowed under its amended $1 billion revolving credit facility and the balance borrowed under the company's accounts receivable securitization conduit facilities.

It said that short-term borrowings under both the credit facility and accounts receivable securitization conduit facilities were $376.5 million as of Feb. 2. Subsequently, the company has repaid these borrowings, using cash from operations during the first quarter of 2004.

Dillard's said that as a result of these transactions, its interest and debt expense declined to $38 million during the quarter from $43.4 million for the year-earlier period.

As of May 1, there were no short-term borrowings under either the $1 billion revolver or the $400 million accounts receivable conduit facilities. Dillard's expects to fund its cyclical working capital needs through a combination of financing from its accounts receivable securitization conduit facilities and its revolver.

As of May 1, 2004, letters of credit totaling $69.9 million were outstanding under Dillard's $1 billion revolver.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.