NEW YORK — Donna Karan came dancing down her runway Sunday night and it appears she had more to celebrate than a successful DKNY collection.
Her company, the Donna Karan Co., is expected to announce today a new revolving line of credit for $120 million to $125 million.
Citibank will lead several banks in issuing the new line, which is said to be oversubscribed already. The move, sources said, represents a vote of confidence in the Karan company by the financial community.
Officials of Citibank and Karan declined to comment on the deal, and further details could not be learned at press time.
The new figure marks an increase from the $110 million revolving credit facility that Karan renewed last year with a group of banks, also led by Citibank.
Karan had been working on a $75 million private placement since the spring, after flirting with, but eventually backing off, a public stock offering. Company officials have indicated for several months, however, that they were not married to a private placement and would seek other sources of financing. The private placement plan reportedly has been abandoned in favor of the increased credit line.