The agreements were coordinated through an intercreditor agreement and will provide a combined borrowing availability of $275 million.
Key features of the amended agreements include:
- Extending the terms to September 18, 2023 from the previous maturities of February 3, 2020
- Removing cash dominion with it applying in the future only if excess availability is less than 12.5% of the loan cap
- Increasing the Wells Fargo revolving borrowing limit to $240 million from the previous $225 million with an increase in the inventory advance rate
- Decreasing the GBF term loan amount from $50 million to $35 million and lowering the borrowing rate by 25 basis points
- Administrative improvements that will enhance liquidity
The new agreements will decrease annual borrowing costs by approximately $1 million and will result in all loan amounts outstanding being classified as long-term obligations. Borrowings under the amended agreements will remain available for working capital and general corporate purposes, as well as to support the company’s letter of credit requirements.
“Our improving results reflect the progress we are making with our strategic initiatives and provided us the opportunity to make positive changes to our credit agreements. We appreciate the support of our lending partners, Wells Fargo and GBF, and their collaboration to successfully complete these amendments,” said Greg Kleffner, CFO of Stein Mart.
Stein Mart is a national specialty off-price retailer offering designer and name-brand fashion apparel, home decor, accessories and shoes at everyday discount prices.