Hudson’s Bay upsizes asset-based revolver due 2021 to $2.25 billion

By Susanna Moon

Chicago, Feb. 7 – Hudson’s Bay Co. amended its asset-based revolving credit facility due Feb. 5, 2021 to increase the loan by $350 million to $2.25 billion.

Interest on the loans range from Libor plus 125 basis points to Libor plus 175 bps.

The key terms are consistent with the initial facility closed in February 2016, according to a company announcement.

As of Jan. 28, the end of fiscal 2016, there was $330 million of outstanding borrowings, compared with $939 million at the end of the third quarter on Oct. 29, 2016.

Of the $350 million increase, $100 million will be used for working capital and other general corporate purposes of the company’s operations in the Netherlands.

“This amendment to our Global ABL provides additional financial flexibility to HBC. Our solid capital structure is supported by long-term mortgages on our 5th Avenue flagships, and we are pleased to strengthen our balance sheet even further with this amendment,” Paul Beesley, the company’s chief financial officer, said in the company’s press release.

“As we open our first Hudson’s Bay stores in the Netherlands later this year, we will be able to rely on this facility to help finance our inventory and other working capital requirements associated with the entry into this market.”

Hudson’s Bay is an Ontario-based operator of department stores.

© 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.