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0.31563 |
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3 M |
0.47500 |
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0.68794 |
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1 YR |
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Saks Fifth Avenue Amends LIBOR-Based Credit Facility |
November 26, 2009
According to a company press release, Saks Fifth Avenue has amended a revolving credit facility with interest rate 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. LIBORATED.com has been covering companies that have engaged in similar credit negotiations, receiving relaxed covenants and terms in exchange for interest rates at a higher margin above LIBOR.
Saks’ borrowing capacity will be $500 million with maturity extended to November 22, 2013. Wells Fargo Retail Finance, UBS Securities LLC, Regions Business Capital, and GE Capital Markets, Inc. were lead arrangers and bookrunning managers. Amended interest rates will fluctuate with usage in a range of 3.5% to 4% above LIBOR. Saks stated that the credit facility will be used for working capital, issuing letters of credit, capital expenditures, and other general financial needs.