Destination Maternity signed a commitment letter with Bank of America for a new five-year $76 million facility to refinance and replace the company’s existing $50 million asset-based loan and $25 million term loan.
The new facility will result in annual interest savings of approximately $1.2 million to $1.4 million.
Marla Ryan, the CEO of Destination Maternity, commented, “We very much welcome this attractive refinancing package from Bank of America. The new facility is a testament to the transformation at Destination Maternity and puts our company on a firm financial foundation.”
“We would like to thank Wells Fargo and Pathlight for their past support and very much look forward to the new financing and commercial partnership with Bank of America.”
The closing of the new Bank of America facility is subject to customary conditions, including due diligence and the negotiation and execution of final documentation. The senior secured facilities are expected to be entered into and funded by the end of the year.
