Francesca's Collections amends credit agreement, gets $75 million

By Tali David

Minneapolis, Sept. 4 - Francesca's Collections, Inc. entered into a second amended and restated credit agreement in the amount of $75 million on Friday, according to an 8-K filed with the Securities and Exchange Commission.

Royal Bank of Canada is the administrative agent and collateral agent.

The facility, which includes up to $10 million for letters of credit, matures on Aug. 30, 2018. It also contains an increase option permitting Francesca's, subject to certain requirements, to arrange with the lenders for additional commitments for up to an aggregate of $25 million, subject to certain reductions, which commitments may be for revolving loans or term loans.

The borrowings bear interest at a rate equal to Libor plus 175 basis points to 225 bps, based upon the achievement of specified levels of a ratio of consolidated total debt to consolidated EBITDA.

Based in Houston, Francesca's is a specialty retailer catering to young females.

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