Lerner New York enters amended and restated $100 million facility

By Jennifer Chiou

New York, Aug. 12 - Lerner New York, Inc., Lernco, Inc. and Lerner New York Outlet, Inc. entered into a third amended and restated loan and security agreement with Wells Fargo Bank, NA as agent and lender, providing for up to $100 million of credit, according to an 8-K filing with the Securities and Exchange Commission.

The companies are wholly owned indirect subsidiaries of New York & Co., Inc., a New York-based apparel, accessories and footwear company.

The commitment consists of a $75 million revolving credit facility, which includes a subfacility for letters of credit up to $45 million. There is an accordion option that allows New York & Co. to increase the revolver up to $100 million or decrease it to a minimum of $60 million, subject to certain restrictions.

Other changes include the extension of the loan to Aug. 10, 2016 as well as a modest increase in interest rates and certain fees in addition to a reduction in financial covenants, the filing said.

Under the loan agreement, the company is currently subject to a minimum excess availability covenant of $7.5 million.

Borrowings will bear interest at Libor plus 175 basis points to 200 bps. There is a monthly fee on outstanding commercial letters of credit of 87.5 bps to 100 bps and on standby letters of credit of between 175 bps and 200 bps per year.

The unused fee is 37.5 bps.

With the closing of the loan agreement, the company repaid in full the $4.5 million outstanding balance on its existing term loan.

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