Abercrombie & Fitch reduces term loan to $150 million, amends covenant

By Angela McDaniels

Tacoma, Wash., Jan. 25 - Abercrombie & Fitch Co. subsidiary Abercrombie & Fitch Management Co. reduced the total commitments under its term loan facility to $150 million from $300 million on Wednesday, according to a Friday 8-K filing with the Securities and Exchange Commission.

The borrower also amended the term loan facility and its revolving credit facility on Wednesday to change the required minimum level of the coverage ratio to 1.75 to 1 as of the end of any fiscal quarter.

Abercrombie & Fitch Management paid a 0.05% amendment fee to each lender. In all, it paid $175,000 to the revolver lenders and $75,000 to the term loan lenders.

As of Wednesday, there were no loans outstanding under either facility. About $1.6 million of letters of credit were outstanding under the revolver.

The parent company guarantees the revolver as well as foreign subsidiaries Abercrombie & Fitch Europe SA, Abercrombie & Fitch (UK) Ltd., AFH Stores UK Ltd., AFH Canada Stores Co. and AFH Japan, GK.

PNC Bank, NA is the agent.

This is the second amendment to the revolver and the first amendment to the term loan facility. The borrower entered into the revolver on July 28, 2011 and amended it for the first time on Feb. 24, 2012. It entered into the term loan facility on Feb. 24, 2012.

Abercrombie & Fitch is a clothing retailer based in New Albany, Ohio.

© 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.