• KORS P.R. PLACEMENT: Michael Kors LLC has created a new public relations position, naming Nacole Anzalone as p.r. director for men’s, women’s and accessories. The restructuring of the department follows the promotion last month of Anne Waterman to senior vice president of communications. Anzalone, who reports to Waterman, was p.r. director for Sergio Rossi and, before that, was an account supervisor at Paul Wilmot Communications.

  • GAP’S LOAN ZONE: Standard & Poor’s Ratings Services on Monday assigned its “BBB” investment-grade rating to Gap Inc.’s $750 million senior secured bank loan that matures on June 24, 2006. The “BB-plus” corporate credit and senior unsecured ratings on Gap were affirmed. S&P said the outlook is negative, in part because increased competition and the soft economy will make it difficult for the retailer to restore operating performance to historical levels. The revolving credit facility was rated two notches higher than the corporate credit rating, based on the likelihood of full recovery of principal in the event of default or bankruptcy. The loan is secured by a first priority perfected security interest in all U.S. inventory of Gap and the stock of its domestic subsidiaries, while the credit agreement, in contrast, requires as a condition to new borrowings that there be no material adverse effect. Among the covenants attached to it are that capital spending not exceed $625 million a year and that Gap’s common dividend and share repurchases not be increased.

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

To Read the Full Article
SUBSCRIBE NOW

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus