Stein Mart, Inc. Announces Five-Year Extended and Amended $275 Million Credit Agreements
September 18 2018 - 4:30PM
Stein Mart, Inc. (NASDAQ: SMRT) (the “Company”) announced today
that it has extended and amended its existing revolving credit
agreement with Wells Fargo Bank (Wells Fargo) and its term loan
agreement with Gordon Brothers Finance Company (GBF). These
agreements are coordinated through an intercreditor agreement and
provide for combined borrowing availability of $275 million.
Key features of the amended agreements include:
- Extending the terms to September 18, 2023 from the previous
maturities of February 3, 2020;
- Removing cash dominion with it applying in the future only if
excess availability is less than 12.5% of the Loan Cap;
- Increasing the Wells Fargo revolving borrowing limit to $240
million from the previous $225 million with an increase in the
inventory advance rate;
- Decreasing the GBF term loan amount from $50 million to $35
million and lowering the borrowing rate by 25 basis points;
and
- Administrative improvements that will enhance
liquidity.
The impact of the new agreements will decrease annual borrowing
costs by approximately $1 million and will result in all loan
amounts outstanding being classified as long-term obligations.
Borrowings under the amended agreements remain available for
working capital and general corporate purposes, as well as to
support the Company’s letter of credit requirements.
“Our improving results reflect the progress we are making with
our strategic initiatives and provided us the opportunity to make
positive changes to our credit agreements. We appreciate the
support of our lending partners, Wells Fargo and GBF, and their
collaboration to successfully complete these amendments,” said Greg
Kleffner, Chief Financial Officer. “The changes announced today
provide additional flexibility which will aid liquidity and is
another step in a positive direction for Stein Mart.”
About Stein Mart Stein Mart, Inc. is a national
specialty off-price retailer offering designer and name-brand
fashion apparel, home décor, accessories and shoes at everyday
discount prices. Stein Mart provides real value that customers will
love every day both in stores and online. The Company currently
operates 289 stores across 30 states. For more information, please
visit www.steinmart.com.
Cautionary Statement Regarding Forward-Looking
StatementsExcept for historical information contained
herein, the statements in this release may be forward-looking and
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. The Company does not
assume any obligation to update or revise any forward-looking
statements even if experience or future changes make it clear that
projected results expressed or implied will not be realized.
Forward-looking statements involve known and unknown risks and
uncertainties that may cause Stein Mart’s actual results in future
periods to differ materially from forecasted or expected results.
Those risks include, without limitation: dependence on our ability
to purchase merchandise at competitive terms through relationships
with our vendors and their factors, consumer sensitivity to
economic conditions, competition in the retail industry, changes in
fashion trends and consumer preferences, ability to implement our
strategic plans to sustain profitable growth, effectiveness of
advertising and marketing, capital availability and debt levels,
dividend impact on stock price, ability to negotiate acceptable
lease terms with current and potential landlords, ability to
successfully implement strategies to exit under-performing stores,
extreme and/or unseasonable weather conditions, adequate sources of
merchandise at acceptable prices, dependence on certain key
personnel and ability to attract and retain qualified employees,
impacts of seasonality, increases in the cost of compensation and
employee benefits, disruption of the Company’s distribution
process, dependence on imported merchandise, information technology
failures, data security breaches, single supplier for shoe
department, single provider for ecommerce website, acts of
terrorism, ability to adapt to new regulatory compliance and
disclosure obligations, material weaknesses in internal control
over financial reporting and other risks and uncertainties
described in the Company’s filings with the SEC.
For more information:Linda L. TasseffDirector, Investor
Relations(904) 858-2639ltasseff@steinmart.com
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