Chico's FAS recently announced closing its amended and extended $300-million senior secured credit facility, consisting of a $285-million asset-based revolving credit agreement (revolver) and a $15-million ‘first-in last-out’ (FILO) term loan, with Wells Fargo & Company as the lead lender. The revolver and FILO have a five-year term maturing on October 30, 2025.
Chico's FAS is a Florida-based fashion company founded in 1983.Chico's FAS has announced closing its amended and extended $300-million senior secured credit facility, consisting of a $285-million asset-based revolving credit agreement (revolver) and a $15-million 'first-in last-out' (FILO) term loan, with Wells Fargo & Company as the lead lender. The revolver and FILO have a five-year term maturing on October 30, 2025.#
Announcing that it has significantly strengthened its liquidity and enhanced its financial stability for the foreseeable future, company chief executive officer and president Molly Langenstein said in a statement that it is continuing to benefit from the aggressive measures it initiated earlier this year to streamline the organisation and reduce operating and occupancy costs.
David Oliver, interim chief financial officer, said: "We are pleased to have added liquidity and based on our projected cash flows do not expect to make additional draws on the credit facility this or next fiscal year. Our leaner expense base will allow for increases in sales to meaningfully improve profitability as the business returns to a more normal environment.”
The amended and extended credit facility replaces the prior $200-million credit facility, which was scheduled to mature in August 2023.
Fibre2Fashion News Desk (DS)
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