Gottschalks amends loan, lowering rate, increasing size

By Sara Rosenberg

New York, Jan. 30 - Gottschalks Inc. amended its credit facility, lowering overall interest expense and expanding the loan size, according to a company news release.

In addition, under the amendment, the company has the option to extend the maturity date of the agreement to March 1, 2011.

Furthermore, the amendment added four owned properties in the revolver following the completion of a mortgage refinancing. These properties carry remaining mortgages totaling $16.4 million at a 9.4% interest rate and inclusion in the revolver would enable Gottschalks to reduce the interest rate to the low 6% range.

GE Commercial Finance is the lead bank on the deal.

"Reduction of the company's interest expense has been and continues to be a priority for management," said Gregory Ambro, chief administrative and financial officer, in the release.

"This action will help to mitigate the impact of the general rise in interest rates that we expect to continue in the near term."

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

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