AMES SHARES RISE OVER $800M CREDIT
NEW YORK — Shares of Ames Department Stores Inc. surged 58.2 percent Wednesday on news of a new $800 million credit facility with GE Capital.
The company’s shares picked up $1.65, to close at $4.50 on the Nasdaq where it remained unchanged on Thursday..
The three-year senior credit facility replaces the company’s existing line of $650 million. The new facility included a higher base and an advance rate, which, along with other features, will increase the company’s cash flow.
Joseph Ettore, chairman and chief executive, noted in a statement, “The new facility will give us added flexibility to follow through on many of the initiatives we have put into place the last two years. In addition, it puts us in a position to enhance profitability even in this tough retail environment.”
Over the past year, Ames’ stock has dropped as dramatically as those of some dot-coms.
Its 52-week high of $30.25 dates back to last April but the low of 44 cents only to last month.
In the past two years, Ames has acquired units previously operated by the now-defunct Hills Department Stores and Caldor.