Ascena amends, restates $500 million asset-based revolving facility

By Wendy Van Sickle

Columbus, Ohio, March 5 – Ascena Retail Group Inc. amended and restated its revolving credit agreement on Feb. 27 to provide for a $500 million asset-based revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The company has the option to expand the revolver by up to $200 million.

The revolver is due on the earlier of five years from closing or 91 days prior to the maturity date of the company’s existing term loan facility unless the outstanding principal amount of the term loans is $150 million or less and the Ascena maintains liquidity equal to the existing outstanding term loans.

There is a $200 million sublimit for letters of credit, a $100 million sublimit for standby letters of credit and a $30 million sublimit for swingline loans.

Interest is Libor plus 125 basis points if average daily availability is less than 50% or Libor plus 150 bps otherwise.

JPMorgan Chase Bank, NA and Bank of America NA are the lead arrangers and bookrunners.

JPMorgan is the administrative agent.

Bank of America and Wells Fargo Bank, NA are the syndication agents, and documentation agents are Fifth Third Bank, Goldman Sachs Bank USA, Capital One, NA and U.S. Bank NA.

The revolver was undrawn at closing, and letters of credit that were outstanding under the existing credit facility will be treated as letters of credit under the new revolver, according to the filing.

Proceeds may be used for working capital, capital expenditures and general corporate purposes.

Ascena is a Mahwah, N.J.-based specialty retailer offering clothing, shoes and accessories for misses and plus-size women. ANN is a New York-based women’s specialty retail fashion company.

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