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Talbots Amends LIBOR-Based Credit Facility |
January 5, 2010
According to a company press release, The Talbots, Inc., a retailer and direct marketer of women’s apparel and accessories, has amended a credit facility with rates based on LIBOR, the London Interbank Offered Rate. LIBOR is a filtered average of rates that banks charge each other for short-term, unsecured loans.
Under the agreement with Aeon Co., Ltd., its major shareholder, Talbots increased its revolving LIBOR-based facility from $150 million to $250 million. The company drew $245 million to pay off its third party bank debt. Cost of funds on the amended facility is 600 basis points above One-Month LIBOR, with interest paid monthly in arrears. The Talbots’ assets will secure the facility, including charge card receivables, inventory and mortgages on major corporate real estate.