Wells Fargo Provides Stein Mart Facility Amendment
Stein Mart entered into a second amended and restated credit agreement with Wells Fargo Bank that will mature in February 2020 and a master loan agreement with Wells Fargo Equipment Finance with the credit agreement. The credit facilities replace the company’s former $100 million senior secured revolving credit facility which was set to mature on February 28, 2017. The facilities increase the revolving credit facility to $250 million, add a $25 million equipment term loan that matures 36 months following date of disbursement, provide better pricing terms and extend the maturity date of the former revolving credit facility.
Borrowings under the facilities will primarily be used for a special dividend, but may also be used for working capital, capital expenditures and general corporate purposes.
After payment of the dividend, the company’s debt will fluctuate between approximately $150 and $200 million in 2015 based on seasonal working capital needs. Interest expense for 2015 is estimated to be approximately $3.5 to $4.0 million based on current interest rates.
“Today’s announcement of a $5.00 special dividend reflects our continued generation of strong cash flows and favorable access to the credit markets which allow us to return value to our shareholders,” said Jay Stein, CEO. “Even after this special dividend, we will have ample capital capacity to make long-term investments in our business, such as our accelerated store expansion.”
Stein Mart merchandise features current season, moderate to better fashion apparel for women and men, as well as accessories, shoes and home fashions.