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BofA Agents Up To $120MM Upsize for Clothing Brand Guess?

April 22, 2020, 08:59 AM
Filed Under: Apparel
Related: Bank of America

Guess?, Inc. entered into an Amendment Number Three to Loan, Guaranty and Security Agreement (the “Third Amendment”) by and among the Company, Guess? Retail, Inc.,, Inc. (collectively, the “U.S. Borrowers”), Guess? Canada Corporation (“Canadian Borrower” and together with the U.S. Borrowers, the “Borrowers”), the guarantors party thereto (the “Guarantors”), the financial institutions from time-to-time party thereto as lenders (the “Lenders”), and Bank of America, N.A., as agent for the Lenders (“Agent”), which amends that certain Loan, Guaranty and Security Agreement, dated as of June 23, 2015, as amended by that certain Amendment Number One to Loan, Guaranty and Security Agreement, dated as of February 16, 2016, and that certain Amendment Number Two to Loan, Guaranty and Security Agreement, dated as of April 22, 2019, by and among the Borrowers, the Guarantors, the Lenders and Agent (as so amended, the “Existing Loan Agreement” and as further amended by the Third Amendment, the “Loan Agreement”).

The Third Amendment amends and extends the maturity of the existing credit facility under the Existing Loan Agreement and provides a senior secured asset-based revolving credit facility that has a maturity date of April 21, 2023. At closing, there were $55 million of direct borrowings and approximately $2.3 million of letters of credit outstanding under the Loan Agreement.

The Third Amendment provides for borrowing capacity in an amount of up to $120 million, including a Canadian sub-facility of up to $20 million, and a borrowing base that is computed quarterly, monthly or weekly, as applicable, and is composed of the Borrowers’ accounts receivable, inventory and eligible cash, subject to certain reserves. Under the Third Amendment, the Borrowers have an option to expand the revolving credit facility by up to $180 million in the aggregate subject to the terms and conditions of the Loan Agreement, including the willingness of existing or new lenders to assume such increased amount. The revolving credit facility includes a $35 million sublimit for U.S. letters of credit and a $15 million sublimit for Canadian letters of credit and also includes a U.S. swingline subfacility of up to $10 million and a Canadian swingline subfacility of up to $5 million.

The Borrowers may voluntarily reduce or terminate the revolver commitments and prepay outstanding loans under the Loan Agreement, in whole or in part, at any time, subject to customary administrative provisions.

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