rue21 extends five-year revolver to 2018, increases it to $100 million

By Tali David

Minneapolis, April 11 - rue21, Inc. and some of its domestic subsidiaries entered into an amended and restated credit agreement, increasing the initial commitment by $15 million to $100 million from $85 million.

The credit agreement is a five-year revolving credit facility with a maturity date of April 5, 2018 and includes an accordion feature under which total commitments under the facility may be increased by an additional $30 million, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings will bear interest at either: (a) the base rate (the higher of Bank of America's prime rate, the federal funds rate plus 50 basis points and one-month Libor, plus 100 bps) plus an applicable margin between 50 bps and 100 bps or (b) adjusted Libor plus an applicable margin between 150 bps and 200 bps.

The credit agreement amends and restates the company's existing credit agreement dated as of April 10, 2008, as amended on Nov. 24, 2009 and Nov. 18, 2011.

Bank of America, NA is a lender, administrative agent, collateral agent, swingline lender and letter of credit issuer. JPMorgan Chase Bank, NA is a lender.

rue21 is a Warrendale, Pa.-based retailer of junior girls and young men's apparel and accessories.

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