Linens 'n Things reveals details on $700 million five-year credit facility

By Jennifer Chiou

New York, Oct. 26 - Linens 'n Things Inc., Linens 'n Things Center, Inc. and Linens 'n Things Canada Corp. disclosed terms on the new agreement obtained along with Linens Holding Co. for a $700 million five-year credit facility, consisting of a $625 million revolving commitment and a $75 million tranche B commitment, according to an 8-K filing with the Securities and Exchange Commission.

GE Capital Markets, Inc. was arranger and bookmanager, General Electric Capital Corp. was U.S. administrative agent and U.S. collateral agent and GE Canada Finance Holding Co. was the Canadian administrative agent and Canadian collateral agent.

Both parts of the facility are subject to a borrowing base, which is a formula based on certain eligible inventory and receivables, minus reserves, and the facility reflects increases in the company's advance rates on this collateral.

An up to $40 million portion is also available to Linens 'n Things Canada.

Some proceeds from the agreement were used to pay off the outstanding amounts under, and terminate the amended and restated credit agreement between the company and UBS Securities LLC.

The facility is guaranteed by substantially all of the assets of the companies, including a first-priority security interest in inventory, accounts receivable, cash, securities and other general intangibles; and a second-priority security interest in equipment, intellectual property rights and related general intangibles and all of the capital stock of Linens 'n Things Inc. and the capital stock of certain subsidiaries.

The initial margin for borrowings under the facility is Libor plus 150 basis points while the margin for the tranche B loans is Libor plus 275 bps.

There is a commitment fee of 37.5 bps.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.