Michaels Stores amends to push out maturity of asset-based revolver

By Sara Rosenberg

New York, Feb. 19 - Michaels Stores Inc. amended its credit facility, extending the maturity date of the asset-based revolver to April 15, 2014 from Oct. 31, 2011, according to an 8-K filed with the Securities and Exchange Commission on Friday.

The extending lenders represent an aggregate amount of $850 million of the tranche A commitments and $50 million of the first-in last-out commitments.

Non-extended commitments of $202 million will expire on the original maturity date.

In addition, the amendment reduced the size of the first-in last-out tranche to $50 million from $100 million and increased the tranche A by $152 million.

Pricing on the extended tranche A can range from Libor plus 300 basis points to 375 bps and on the first-in last-out tranche from Libor plus 500 bps to 575 bps, based on availability.

The extended debt also has a 62.5 bps unused fee.

Lastly, the amendment provides for a pro forma credit availability condition.

Bank of America is the administrative agent on the deal.

The amendment was completed on Feb. 18.

Michaels is an Irving, Texas-based specialty retailer of arts, crafts, framing, floral, wall décor and seasonal merchandise for the hobbyist and do-it-yourself home decorator.

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