Genesco enters into new $400 million facility via Bank of America

By Tali Rackner

Norfolk, Va., Feb. 5 - Genesco Inc. entered into a $400 million revolving credit facility on Jan. 31 with Bank of America, NA, according to an 8-K filed with the Securities and Exchange Commission.

The facility, under the third amended and restated agreement, replaces the company's previous $405 million revolver.

The five-year facility includes a $70 million sublimit for the issuance of letters of credit and a domestic swingline subfacility of up to $40 million; a revolving credit subfacility for the benefit of GCO Canada Inc. of up to $25 million, which includes a $5 million sublimit for the issuance of letters of credit; and a revolving credit subfacility for the benefit of Genesco (UK) Ltd. of up to $50 million, which includes a $10 million sublimit for the issuance of letters of credit and a swingline subfacility of up to $10 million.

Any swingline loans, letters of credit and borrowings under the Canadian and U.K. facilities will reduce the availability under the credit facility on a dollar-for-dollar basis.

The company may increase the facility by an amount up to $150 million subject to, among other things, the receipt of commitments for the increased amount. The Canadian revolving credit facility may be increased up to no more than $40 million. Genesco (UK) Ltd. has a one-time option to increase the availability of its subfacility under the credit facility by an additional amount of up to $50 million.

The facility also provides that a first-in, last-out tranche could be added to the revolving credit facility at the option of the company subject to, among other things, the receipt of commitments for such tranche.

Initial interest on the loans bears interest at Libor plus 150 bps.

There is an unused commitment fee of 25 bps.

Genesco is a Nashville, Tenn.-based retailer of branded footwear, licensed and branded headwear and licensed sports apparel and accessories.

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