By  on April 22, 2008

Women's apparel retailer Coldwater Creek Inc. said Monday it has amended its $60 million, five-year revolving credit facility with Wells Fargo Bank.

The amendment allows the company greater financial flexibility by reducing the quarterly fixed charge coverage requirement for the remainder of fiscal 2008.

"We have a strong and long relationship with Wells Fargo and this amendment shows they are confident in us going forward, unlike what is going on with some of our peers," said Tim Martin, chief financial officer.

Coldwater Creek also agreed to refrain from repurchasing stock before May 2, 2009, and will maintain liquidity of at least $30 million through April 2009.

At the end of fiscal 2007 the company had $62.5 million in cash, $115.8 million in working capital and no borrowings under its bank facility. The specialty retailer said its current cash and working capital, along with cash flow from operations, will be sufficient to fund operations and anticipated capital expenditures.

The news comes after last week's announcements from apparel retailers Talbots Inc. and Sears Holding Corp. that they lost letters of credit from their top lenders.

Abercrombie & Fitch Co. said Friday that it is receiving a new $450 million unsecured revolving credit facility from a group of lenders that include National City Bank, J.P. Morgan Securities Inc. and Bank of America. The new credit agreement replaces a $250 million facility that was set to expire on Dec. 15, 2009. Eddie Bauer Holdings, Inc. assured in a first-quarter same-store sales release that it remains in compliance with all of its loan covenants for the first quarter. The company does not use letters of credit to finance product sourcing.

To access this article, click here to subscribe or to log in.

To Read the Full Article

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus