Stein Mart completed the closing of a term loan with Gordon Brothers Finance in the amount of $50 million. In connection with the loan, Stein Mart also amended its existing second amended and restated credit agreement, with Wells Fargo serving as administrative agent.
All of the proceeds from the term loan were used to pay down borrowings under the credit facility, including the first-in, last-out (FILO) A-1 tranche. This increased unused availability under the credit facility by up to $25 million. The term loan will mature on the earlier of the termination date of the credit facility (currently February 3, 2020) and March 14, 2020.
Greg Kleffner, Stein Mart’s CFO, commented, “This transaction will provide us with additional liquidity, bringing our cash and unused borrowing availability today to more than $60 million. This shows the confidence that our lending partners have in our business.”
Stein Mart is a national specialty off-price retailer offering designer and name-brand fashion apparel, home décor, accessories and shoes at discount prices.