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Hudson’s Bay Company Increases Capacity of Asset-Based Revolver

February 07, 2017, 08:00 AM
Filed Under: Retail

Hudson's Bay Company announced the closing of an amendment to its asset-based revolving credit facility that increases its total capacity by $350 million to a total of $2.25 billion. Of this $350 million increase, $100 million is allocated to financing the working capital requirements and other general corporate purposes of the Company’s operations in the Netherlands. All other terms remain substantially the same.

Paul Beesley, Chief Financial Officer, HBC commented, “This amendment to our Global ABL provides additional financial flexibility to HBC. Our solid capital structure is supported by long term mortgages on our 5th Avenue flagships, and we are pleased to strengthen our balance sheet even further with this amendment. As we open our first Hudson’s Bay stores in the Netherlands later this year, we will be able to rely on this facility to help finance our inventory and other working capital requirements associated with the entry into this market.”

The Global ABL allows HBC to use its inventory and accounts receivable as collateral to finance working capital requirements, capital expenditures and other general corporate purposes. The $2.25 billion facility has a maturity date of February 5, 2021 with key terms that are consistent with the initial Global ABL facility closed in February of 2016. Interest rates on this facility range between LIBOR+125 to LIBOR+175. At the end of Fiscal 2016, January 28, 2017, there was a total of $330 million outstanding borrowings on the Global ABL, as compared to $939 million at the end of the third quarter, October 29, 2016.

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