Gottschalks amends loan to extend maturity by two years

By Sara Rosenberg

New York, Dec. 13 - Gottschalks Inc. amended its credit facility, extending the revolver maturity by two years to Feb. 28, 2009, according to a company news release. GE Commercial Finance's Corporate Lending group is the lead bank on the deal.

Additionally, the amended agreement allows for Gottschalks to pay down the principal on its $22.2 million subordinated note with El Corte Ingles by up to $8 million over the next five years.

The term of the subordinated note was also extended to May 9, 2009.

"We are very pleased with the amended terms of our credit facility and the continued cooperation and support of our lenders," said Gregory Ambro, chief administrative and financial officer, in the release. "We continue to focus on reduction of our interest expense. The successful completion of this amended credit agreement is another example of our commitment to reduce our total debt and lower our interest costs in the long term."

Gottschalks is a Fresno, Calif.-based department store chain.

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