Ascena Retail borrows $230 million under $500 million ABL revolver

By Sarah Lizee

Olympia, Wash., March 19 – Ascena Retail Group, Inc. borrowed about $230 million under its $500 million asset-based revolving credit facility on March 16, according to an 8-K filing with the Securities and Exchange Commission.

There is an up to $200 million accordion under the revolver.

The current interest rate is about 3.25% plus an applicable margin ranging from 25 basis points to 50 bps.

The company said it took this action as a precautionary measure in order to increase its cash position and preserve financial flexibility in light of the current uncertainty in the global financial markets from the Covid-19 outbreak.

The company also announced that as a precautionary measure it will temporarily close all company-operated retail stores, effective March 18 through March 28.

Ascena is a Mahwah, N.J.-based specialty retailer offering clothing, shoes and accessories for misses and plus-size women.

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