Five Below obtains up to $50 million additional borrowing commitment under asset-based revolver

By Rebecca Melvin

New York, Jan. 29 – Five Below, Inc. entered into a Jan. 27 first amendment to its credit agreement among the company, 1616 Holdings Inc., the guarantor, the lenders and Wells Fargo Bank, NA, as agent for the lenders, according to an 8-K filing with the Securities and Exchange Commission.

Under the amendment to its fifth amended and restated credit agreement, dated April 24, 2020, the company obtained up to $50 million of additional commitments from lenders under its senior secured asset-based revolving credit facility.

The change preserves existing provisions of the agreement allowing for further increases, provided that the total amount of the facility does not exceed $375 million. The current amount of the credit facility is maintained at $225 million.

Availability of the facility will continue to be based on borrowing base certifications.

The amendment also reduced the pricing under the credit facility, under which outstanding borrowings accrue interest at Libor plus 125 basis points to 175 bps and letter-of-credit fees ranging from 125 bps to 175 bps.

The amendment makes other revisions to the credit agreement covenants, including a revision to the minimum availability covenant to require availability of 12.5% during the diligence deferral period and 10% at all other times.

Five Below is a specialty value retailer based in Philadelphia offering merchandise targeted at the aspirational teen and pre-teen customer.

© 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.