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05/12/2021

Saks.com gets new financing to fuel growth

Marianne Wilson
Editor-in-Chief
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Sak.com is looking to capitalize on economic recovery and drive growth through a new round of financing.

The online luxury retailer has closed on a syndicated $350 million, asset-based five-year revolving credit facility arranged by Bank of America and a $115 million senior secured term Loan arranged by Pathlight Capital LP. (In March, Saks Fifth Avenue owner Hudson’s Bay Company and venture capital firm Insight Partners entered into a partnership that established Saks’ e-commerce business as a standalone entity known as Saks. The retailer’s store fleet operates separately as a company called SFA.)

The asset-based revolving credit facility, undrawn at closing, remains available to Saks for general corporate purposes or growth initiatives. A portion of the proceeds from the term loan will be used to fund certain obligations to HBC in connection with the company's recent transaction, and the remaining amount will be available to Saks. 

The new financing comes as online sales, which took off the during the pandemic, continue to boom, particularly in the luxury sector.

"Given our strong market position and the improving economic environment, Saks is poised to lead in luxury ecommerce,” said Vince Phelan, CFO of Saks. “These transactions and their favorable terms are a reflection of the strength of our business and capital position. Furthermore, this financing combined with cash we already have on hand ensures we have substantial liquidity and flexibility to execute on our strategic plans and build on the upward trajectory we are already seeing in our business."