Whitehall increases credit facility to $140 million, extends maturity

New York, Oct. 4 - Whitehall Jewellers, Inc. said it increased its credit facility by $15 million to $140 million and extended the maturity to 2008.

LaSalle, Back Bay and Bank of America are the banks for the facility.

Availability is set by a borrowing base.

The increase was one of a series of transactions completed on Oct. 3.

The Chicago-based jewelry retailer also agreed with Prentice Capital Management, LP on a $30 million secured bridge loan. The loan pays interest at 18%, matures on Dec. 31, 2005 and includes 2.79 million seven-year warrants exercisable at $0.75 per share.

Whitehall will also issue $50 million of secured convertible notes to Prentice by Jan. 31, 2006. The notes, which are subject to shareholder approval and other conditions, will be used to pay off the bridge loan and provide additional liquidity. They will pay interest at 12% in stock for three years. The conversion price is $0.75 per share.

With vendors holding more than 90% of the company's trade debt, Whitehall, the banks and prentice have reached an agreement to assist the purchase of fresh inventory for the holiday season and provide for full payment of all amounts owed to those vendors over time, secured by a lien on substantially all of the company's assets ranking junior to the liens securing the company's bank debt and debt to Prentice.

© 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.