Retail Ventures' Value City subsidiary repays term loan, some other bank debt

New York, July 5 - Retail Ventures, Inc. said its Value City Department Stores LLC subsidiary repaid its $100 million term loan facility in full, $25 million under its $75 million convertible loan facility and $120 million under its revolving credit facility.

The action will cut interest expense by $22 million a year.

In addition, the Columbus, Ohio, off-price retailer said its DSW Inc. subsidiary completed its initial public offering of 16,171,875 class A common shares at $19 per share. Part of the proceeds were used to repay intercompany debt owed to Retail Ventures.

In connection with the transactions, Retail Ventures replaced its $75 million convertible loan facility with a $50 million senior loan facility and warrants to its senior loan lenders providing them the right to buy 16,666,667 Retail Ventures common shares at $4.50 per share.

Existing warrants for 2,954,792 Retail Ventures common shares were amended so that they can also be exercised for DSW class A stock at the IPO price of $19.00. The senior lenders' warrants can also be exercised for DSW stock at the same price.

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