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Wells Fargo, PNC Among Lenders in Abercrombie & Fitch’s Proposed Refinancings

July 15, 2014, 07:23 AM
Filed Under: Retail

Abercrombie & Fitch Co. announced that it has initiated a process to refinance its existing credit facilities.  The existing credit facilities consist of a $350 million unsecured revolving credit facility maturing July 27, 2016 and a $150 million Term Loan A maturing February 23, 2017.

The new credit facilities are expected to consist of a $400 million asset-based revolving credit facility and a $325 million Term Loan B maturing five and seven years after the closing date, respectively.   The new credit facilities are subject to, among other things, negotiation, successful syndication, execution and delivery of definitive loan documentation and various customary closing conditions.   Proceeds from the Term Loan B are expected to be used to pay off the remaining $131.5 million balance under the existing Term Loan A, to repay outstanding borrowings of $60 million under the existing Revolving Credit Facility, and to pay related fees and expenses associated with the transaction.  The balance of the proceeds will be used for general corporate purposes, including potential share repurchases in accordance with the Company's previously announced stock repurchase authorizations.  The company does not expect, other than for an immaterial amount of outstanding letters of credit, to draw down on the Asset-Based Revolving Credit Facility at closing.

Commenting on the announcement, Everett Gallagher, Treasurer of Abercrombie & Fitch Co., said: "The proposed refinancing we have initiated is an opportunity for A&F to take advantage of current favorable credit markets, and increase financial flexibility for the Company in the future."

The terms of the refinancing could materially differ from above and no assurances can be given that the refinancing will be consummated. 

Wells Fargo Securities, LLC, PNC Capital Markets LLC, J.P. Morgan Securities LLC and Goldman Sachs Lending Partners are acting as Joint Lead Arrangers and Joint Bookrunners  for the Term Loan B and Wells Fargo Bank, N.A., PNC Capital Markets LLC, and JPMorgan Securities LLC are acting as Joint Lead Arrangers and Joint Bookrunners for the Asset-Based Revolving Credit Facility.

Abercrombie & Fitch Co. is a leading global specialty retailer of high-quality, casual apparel for Men, Women and kids with an active, youthful lifestyle under its Abercrombie & Fitch, abercrombie, Hollister Co. and Gilly Hicks brands. At the end of the first quarter, the Company operated 842 stores in the United States and 157 stores across Canada, Europe, Asia and Australia.

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