Conn’s Expands Revolving Credit Facility With BofA, Others
Conn’s, Inc., a specialty retailer of home appliances, furniture, mattresses, consumer electronics and provider of consumer credit, announced that it completed an expansion and extension of its asset-based loan facility with a syndicate of banks.
According to the company’s 8-K filing, the second amended and restated loan and security agreement, effective September 26, 2012, with Bank of America as administrative agent and collateral agent, JPMorgan Chase Bank and Union Bank as co-syndication agents, Merrill Lynch, Pierce, Fenner & Smith and J.P. Morgan Securities as joint bookrunners and co-lead arrangers, Regions Business Capital, Compass Bank and Capital One as co-documentation agents.
Under the amended terms, the revolving facility commitment increased $75 million to $525 million and the maturity date was extended to September 2016. Borrowing costs under the facility are reduced and borrowing availability is improved. The company estimates, based on its current debt balance and current market rates, the above transaction will benefit diluted earnings per share by approximately $0.02 on an annual basis.
“Our improved operating performance and financial condition provided us with the opportunity to increase the capacity and extend the term of our revolving credit facility,” stated Theodore M. Wright, chairman and CEO. “This amendment to the facility delivers flexibility to pursue our growth strategies, while lowering our borrowing costs.”
The company is a specialty retailer currently operating 65 retail locations in Texas, Louisiana and Oklahoma.