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Wells Fargo Bolsters Clothier Christopher & Banks’ Credit Facility

August 27, 2018, 09:00 AM
Filed Under: Retail

Christopher & Banks Corporation and its two subsidiaries, Christopher & Banks, Inc. and Christopher & Banks Company entered into a second amendment (the “Second Amendment”) to its existing credit facility ( the “Credit Facility”) with Wells Fargo Bank, National Association (“Wells Fargo”) as Lender. (Capitalized terms not defined herein shall have the same meaning provided for in the Second Amendment or the Credit Facility.)

The Second Amendment, among other changes, (i) extended the term of the Credit Facility to August 3, 2023; and (ii) supplements the existing $50.0 million revolving credit facility by adding a new $5.0 million revolving “first-in, last-out” tranche credit facility (the “FILO Facility”), subject to the borrowing base restrictions applicable to the FILO Facility. The Borrowers must draw under the FILO Facility before making any borrowings under the revolving credit facility. Loans under the FILO Facility will bear interest, based on quarterly excess availability under the Borrowing Base. At closing, the rate under the FILO Facility will be either (i) the LIBO Rate plus 3.00% for FILO Loans that are LIBO Rate Loans; or (ii) 2.00% above the Base Rate for FILO Loans that are Base Rate Loans. These rates are slightly higher than the rates under the revolving credit facility.

In addition to these changes, the Second Amendment eliminates availability against the Borrowers’ real property, which was the subject of a recent sale-lease back transaction.

The foregoing description of the Second Amendment does not purport to be complete and is qualified in its entirety by reference to the Second Amendment, a copy of which is filed as an exhibit to this report and incorporated herein by reference.

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