The Bon-Ton Stores closed a new $150 million ABL term loan that matures in March 2021. According to a related 8-K filing, Bank of America served as agent for the transaction.

The new $150 million loan replaced the existing $100 million A-1 tranche of the company’s credit facility and increased the total commitment under the facility to $880 million. The ABL term loan bears interest at a rate of LIBOR+950 basis points.

The company will use approximately $75 million of the net proceeds to reduce all amounts currently outstanding under the existing A-1 tranche of its credit facility, which matures in December 2018. The balance of the net proceeds will be used to enhance the company’s liquidity and retire the remaining $57 million of its senior notes due 2017.

Nancy Walsh, Bon-Ton’s EVP, CFO said, “We are pleased to announce this refinancing which enhances our borrowing capacity and extends our debt maturities. We have successfully added liquidity which will facilitate the retirement of our 2017 notes. We appreciate the strong support of our existing bank group as well as the new institutional lenders in the ABL term loan.”

York, PA-based The Bon-Ton Stores operates 267 stores in 26 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers nameplates.