The Talbots, Inc. announced that the company has entered into a new $75 million secured term loan led by Wells Fargo Bank. In connection with this transaction, Talbots also amended its existing $200 million secured revolving credit facility with GE Capital, Corporate Retail Finance.

“These transactions enhance the Company’s liquidity, and provide Talbots with greater financial flexibility to support the board’s evaluation of a full range of strategic alternatives,” said Trudy Sullivan, president and chief executive officer. “We are pleased to have the continued support of GE Capital, as well as this new commitment led by Wells Fargo.”

The new $75 million secured term loan, which matures on February 16, 2017, is secured by a first lien on certain real estate and on intellectual property, equipment and fixtures, and a second lien on the company’s remaining assets. The interest rate on the term loan is equal to LIBOR plus 10%. The lead agent on the term loan is Wells Fargo Bank. The company also announced that it has amended its existing $200 million secured revolving credit facility with GE Capital, which was set to expire in October 2013. Under the amended revolving credit facility, which matures on February 16, 2017, interest on the outstanding principal is LIBOR plus 2.5% to 3.0%. The facility is secured by a second lien on certain real estate and on intellectual property, equipment and fixtures, and a first lien on the company’s remaining assets.

As announced in the company’s press release on December 20, 2011, Talbots Board of Directors continues to explore a full range of strategic alternatives to maximize value for all Talbots’ stockholders.

Perella Weinberg Partners is acting as financial advisor and Dewey & LeBoeuf is acting as legal counsel to Talbots in connection with these financings and the Board’s evaluation of strategic alternatives.

The Talbots, Inc. is a specialty retailer and direct marketer of women’s apparel, shoes and accessories.

Previously on abfjournal.com:

GE Capital Provides $200 Million to Specialty Retailer Talbots, Wednesday, April 07, 2010