Belk, a regional department store serving communities across the Southeastern United States, closed $1.275 billion in new senior secured credit facilities with Wells Fargo Bank and Pathlight Capital.
The financing consists of a $900 million asset-based revolving credit facility and a $375 million first-in, last-out term loan (FILO) facility. Wells Fargo serves as administrative agent and collateral agent for both facilities, and Pathlight Capital serves as term loan managing agent for the FILO facility.
The new five-year financing replaces Belk’s existing ABL, FILO and securitization facilities. It provides the company with a simplified capital structure and enhanced liquidity to support working capital needs, seasonal inventory investment and other general corporate purposes. The facilities are supported by a broad collateral base that includes inventory, receivables, real estate, equipment, intellectual property and the company’s industry leading private-label credit card program.
“This opportunistic financing represents an important milestone and reflects the continued strength in Belk’s business by providing us with the flexibility to continue investing in our business and serving our customers,” Vince Phelan, Chief Financial Officer of Belk, said. “We appreciate the support, expertise and collaborative approach demonstrated by Wells Fargo, Pathlight Capital and the broader lender group throughout the transaction.”
Founded more than 138 years ago, Belk operates nearly 300 Belk, Belk Market, and Belk Outlet locations across 16 states and maintains a strong omnichannel presence through Belk.com and the Belk mobile app. The Company remains focused on providing its customers with localized merchandising, including an attractive mix of national and private brands, maintaining disciplined inventory management, and enabling convenient shopping experiences across its stores and digital channels.
Keith Vercauteren, division manager and head of Wells Fargo’s corporate and retail asset-based lending platform, added, “Wells Fargo is proud to expand its relationship with Belk and deliver a flexible financing solution supporting the company’s long-term objectives. We look forward to supporting the company in its next phase.”
Matt Williams, managing director at Pathlight Capital, said, “We are pleased to partner with Belk and Wells Fargo on this financing. The transaction provides Belk with additional liquidity and flexibility as the company continues to invest in its business and execute on its strategic priorities.”
