Fifth & Pacific enters into extended asset-based revolving facility

By Jennifer Chiou

New York, April 19 - Fifth & Pacific Cos., Inc. entered into on April 18 an amended and restated senior secured asset-based revolving credit facility, extending the maturity to April 18, 2018 from Aug. 6, 2014, according to an 8-K filed with the Securities and Exchange Commission.

JPMorgan Chase Bank, NA is the administrative agent with Bank of America, NA, Wells Fargo Capital Finance, LLC and Suntrust Bank as lenders.

The revolver has availability in an amount equal to the lesser of $350 million and a borrowing base that is computed monthly and comprised of the company's eligible cash, accounts receivable and inventory.

The amended credit agreement also includes a $55 million swingline subfacility, a $100 million multicurrency subfacility and the option to expand the facility by up to $100 million under certain conditions, the filing stated.

Fifth & Pacific said that up to $200 million is available for letters of credit, and standby letters of credit may not exceed $65 million in the aggregate.

Borrowings now bear interest at a lower rate: Libor plus 175 basis points to 225 bps, depending on availability.

The company has to maintain pro forma compliance with a fixed-charge coverage ratio of 1.0 to 1.0 on a trailing 12-month basis if minimum aggregate borrowing availability falls below $35 million, or 10% of the commitments then in effect.

Proceeds may be used for working capital and for general corporate purposes, including refinancing, repayment, repurchase and cash settlement of certain indebtedness.

New York-based Fifth & Pacific, formerly Liz Claiborne Inc., was formed in May 2012. The company is focused on growing its global lifestyle brands: Juicy Couture, Kate Spade and Lucky Brand.

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