Philadelphia Destination Maternity Corp. has prepaid $10 million of its senior-secured term loan due March 2013 as a part of its effort to deleverage its balance sheet.
On Nov.18, the company announced that it intended to prepay $10 million of its term loan prior to the end of the first quarter of fiscal 2009 (Dec. 31). The $10 million of term-loan prepayments the company has made since that announcement include a $622,000 prepayment required under the annual excess cash-flow provision of the term loan. Pursuant to the provisions of the term loan, the prepayments were made without any prepayment premium or penalty.
The company’s indebtedness under the term loan is now $65.7 million.