Destination Maternity has entered into a new secured term loan agreement for $32 million due March 25, 2021. The proceeds were used to pay down existing borrowings under the company’s credit line. Wells Fargo Bank arranged the financing and acts as the administrative and collateral agent. As part of the transaction, the company has extended the term of its $70 million revolving credit facility with Wells Fargo through the maturity of the term loan.

Terms of the transaction are detailed in the company’s Form 8-K to be filed with the Securities & Exchange Commission.

In connection with the debt refinancing the company’s board of directors agreed to suspend the company’s quarterly dividend. While dividends have been an important part of the company’s historical shareholder returns, management believes the best return on capital today is through targeted reinvestment into the business.

Philadelphia-based Destination Maternity is a designer and retailer of maternity apparel.