Linens 'n Things gets $700 million credit facility

By Sara Rosenberg

New York, Oct. 25 - Linens 'n Things, Inc. closed on a new $700 million credit facility, according to a company news release.

GE Capital Markets acted as the lead bank on the deal.

Early in the third quarter, GE Capital approached the company and proposed a new asset-based credit facility with materially improved terms relative to the former credit facility and, in August, the company obtained an underwriting commitment from GE Capital, the release said.

The new facility provides for increases in the company's advance rates on inventory and accounts receivable for its borrowing base computation as well as the elimination of all financial maintenance covenants.

Proceeds were used to replace the company's previous $700 million credit facility with UBS.

All of the agent banks in the company's former credit facility continue to be participants in the new credit facility.

Linens 'n Things is a Clifton, N.J., retailer of home textiles, housewares and home accessories.

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