The Children’s Place announced the expansion of its revolving credit facility from $350 million to $445 million.
The fifth amendment to the company’s credit agreement also replaces LIBOR as the interest rate benchmark with the SOFR interest rate benchmark and updates the interest rates to reflect current market terms.
“We are extremely pleased to welcome PNC Bank as a new joint lead arranger, who is committing an additional $95 million toward our revolving credit facility, and we are grateful for the support provided by our current banking group. This additional credit availability will significantly strengthen our financial position while also supporting our seasonal working capital needs and investments in the company’s future growth,” Sheamus Toal, chief financial officer, said.
Under the amended credit agreement, revolving credit borrowings will bear interest at SOFR plus 2%, or 2.25% per annum, based on the amount of the company’s average daily excess availability. As a SOFR loan, the term loan under the amended credit agreement will bear interest at SOFR plus 2.75% per annum.
