Saks amends $500 million revolving facility; maturity extended to 2016

By Marisa Wong

Madison, Wis., March 29 - Saks Inc. announced that it has entered into an amendment to its existing revolving credit agreement.

The maturity date of the facility has been extended to March 29, 2016 from Nov. 23, 2013.

Other terms of the revolving credit facility have also been revised. The new interest rates vary with usage and are in the range of Libor plus 200 to 250 basis points, amended from Libor plus 350 to 400 bps.

The facility is subject to no financial covenants unless the availability falls below $62.5 million, revised from $87.5 million previously.

The company said the maximum committed borrowing capacity of the amended facility remains at $500 million.

The company currently has no direct outstanding borrowings on the revolving credit facility.

As a result of the amendment, the company estimates that 2011 interest expense will total about $50 million, a slight reduction from the previous estimate of $51 million to $53 million.

"We are very pleased to complete this amendment to our revolving credit facility, which further strengthens our capital structure and overall financial flexibility. We appreciate the response from and support of our lenders in making these enhancements to our facility," said Kevin Wills, executive vice president and chief financial officer of Saks.

Saks is a New York-based operator of fashion retail stores.

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