Saks Inc. extended its $500 million revolving credit facility, pushing its expiration back to March 2016 from November 2013 and cutting its estimated 2011 interest expense in the process.
Kevin Wills, executive vice president and chief financial officer, said the amended facility “strengthens our capital structure and overall financial flexibility.”
The interest rate on the amended facility ranges from 2 percent to 2.5 percent above the London Interbank Offer Rate, down from the 3.5 percent to 4 percent previously charged.
Saks said the amendment would cut its 2011 interest expense to about $50 million, down $1 million to $3 million from the previous estimate.
The luxe department store has no outstanding borrowings under the facility.