Abercrombie enters into $300 million term loan facility with PNC

By Jennifer Chiou

New York, Feb. 29 - Abercrombie & Fitch Co. and subsidiary Abercrombie & Fitch Management Co. entered into on Feb. 24 a $300 million term loan facility with PNC Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

PNC Capital Markets LLC and J.P. Morgan Securities LLC acted as co-lead arrangers and co-bookrunners with JPMorgan Chase Bank, NA as syndication agent, Fifth Third Bank as co-documentation agent, Citizens Bank of Pennsylvania as co-documentation agent and Huntington National Bank, U.S. Bank NA, Sumitomo Mitsui Banking Corp. and HSBC Bank USA, NA as lenders.

The filing stated that the New Albany, Ohio, retail company entered into the loan to increase its flexibility and liquidity.

The facility will mature on Feb. 23, 2017.

Borrowings will bear interest at Libor plus 100 basis points to 200 bps based on leverage. There is a commitment fee of 20 bps to 40 bps, also based on leverage.

Proceeds will be used for general corporate purposes.

The filing added that leverage under the term loan may not be greater than 3.75 to 1.00 at the end of each quarter and at any time pro forma compliance is required to be tested.

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