New Albany, Ohio - Abercrombie & Fitch Co. has initiated a process to refinance $500 million in existing credit facilities to two new facilities worth a total of $750 million. Proceeds are expected to be used to pay off a remaining $131.5 million balance and outstanding borrowings of $60 million related to existing credit facilities, and to pay related fees and expenses associated with the transaction.
The existing credit facilities consist of a $350 million unsecured revolving credit facility maturing July 2016 and a $150 million Term Loan A maturing February 2017. The new credit facilities are expected to consist of a $400 million asset-based revolving credit facility and a $325 million Term Loan B maturing five and seven years after the closing date, respectively.
The balance of the proceeds will be used for general corporate purposes, including potential share repurchases in accordance with the company’s previously announced stock repurchase authorizations.
“The proposed refinancing we have initiated is an opportunity for A&F to take advantage of current favorable credit markets, and increase financial flexibility for the company in the future,” said Everett Gallagher, treasurer of Abercrombie & Fitch Co.