Men's Wearhouse closes on amended line of credit
Men's Wearhouse closes on amended and restated revolving credit facility
FREMONT, Calif. (AP) -- Men's Wearhouse has closed on an amended and restated revolving credit facility that gives it more financial flexibility.
The men's clothing retailer said that it plans to use the line of credit for general corporate purposes.
President and CEO Doug Ewert said in a statement on Tuesday that the agreement boosts the revolver from $200 million to $300 million, adds a $100 million term loan option and increases the expansion feature to $150 million from $100 million. It also extends the maturity date by two years to April 12, 2018.
The term loan option is available for 120 days after the facility's closing. If Men's Wearhouse Inc. chooses to use the loan, it will be repaid over a five-year period.
Men's Wearhouse has 1,143 stores. Last month the company reported a bigger-than-expected fiscal fourth-quarter loss. It also announced plans to explore the possible sale of its discount K&G chain, which is one of its weaker performing units. Men's Wearhouse also owns its namesake chain and Moores and operates and a uniform and workwear business in the U.S. and U.K.
Shares of Men's Wearhouse closed Monday at $33.32, up about 7 percent since the start of the year.
