Kmart reduces revolver to $1.5 billion from $2 billion

By Sara Rosenberg

New York, Dec. 5 - Kmart Holding Corp. said it has opted to reduce the size of its revolving credit facility to $1.5 billion from $2 billion to lower the overall cost of the facility. General Electric Capital Corp., Fleet Retail Finance Inc. and Bank of America are the lead banks on the facility.

"The strength of our liquidity position is especially noteworthy, as we have progressed through the peak buying period for the holiday season with no direct borrowings drawn from our credit facility. In fact, at our point of lowest liquidity, the company had over $800 million in cash and cash equivalents," said Julian C. Day, president and chief executive officer, in a company news release.

As of Oct. 29, the company had $900 million in cash and cash equivalents and borrowing availability of about $1.6 billion on its $2 billion credit facility, inclusive of outstanding letters of credit. The company does not expect to borrow any additional funds under the revolver in fiscal 2003, according to a filing with the Securities and Exchange Commission.

Kmart is a Troy, Mich., discount retailer and a general merchandise retailer.

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