Daily News: July 15, 2014

Wells Fargo, Others to Arrange Abercrombie ABL Facility

Abercrombie & Fitch Co. announced that it has initiated a process to refinance its existing credit facilities. The existing credit facilities consist of a $350 million unsecured revolving credit facility maturing July 27, 2016 and a $150 million term loan A maturing February 23, 2017.

The new credit facilities are expected to consist of a $400 million asset-based revolving credit facility and a $325 million term loan B maturing five and seven years after the closing date, respectively.

Wells Fargo Bank, PNC Capital Markets and J.P. Morgan Securities are acting as joint lead arrangers and joint bookrunners for the ABL revolver. Wells Fargo Securities, PNC Capital Markets J.P. Morgan Securities and Goldman Sachs Lending Partners are acting as joint lead arrangers and joint bookrunners for the term loan.

The new credit facilities are subject to, among other things, negotiation, successful syndication, execution and delivery of definitive loan documentation and various customary closing conditions.

Proceeds from the term loan B are expected to be used to pay off the remaining $131.5 million balance under the existing term loan A, to repay outstanding borrowings of $60 million under the existing revolver, and to pay related fees and expenses associated with the transaction. The balance of the proceeds will be used for general corporate purposes. The company does not expect, other than for an immaterial amount of outstanding letters of credit, to draw down on the asset-based revolving credit facility at closing.

Abercrombie & Fitch Co. is a global specialty retailer of high-quality, casual apparel for men, women and kids with an active, youthful lifestyle under its Abercrombie & Fitch, abercrombie, Hollister Co. and Gilly Hicks brands.