Oxford Industries gets $325 million restated revolver with better terms

By Marisa Wong

Morgantown, W.Va., May 24 – Oxford Industries, Inc. entered into a fourth amended and restated credit agreement for an up to $325 million secured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement completed on Tuesday amends and restates the company’s third amended and restated credit agreement dated June 14, 2012.

SunTrust Bank is the administrative agent.

The credit facility may be increased by up to an additional $100 million.

Availability is limited to a borrowing base consisting of specified percentages of eligible categories of assets, including inventory, receivables and eligible trademarks.

The facility matures on May 24, 2021.

Borrowings will bear interest at Libor plus a margin of 125 basis points or 150 bps, depending on average excess availability.

The credit agreement contains a financial covenant that applies only if excess availability is less than the greater of $23.5 million and 10% of total availability for three consecutive business days. In that case, the company’s fixed-charge coverage ratio for the preceding 12 fiscal month period may not be less than 1.0 to 1.0 for that period.

The company believes that the applicable margins, terms for inclusion of assets in the borrowing base and other terms and conditions under the latest restated credit agreement are more favorable to the company than under the prior agreement.

The prior facility was a $235 million revolver set to mature on Nov. 21, 2018.

Oxford Industries is an Atlanta-based clothing retailer. Its labels include Tommy Bahama, Lilly Pulitzer, Southern Tide, Oxford Golf and Lanier Clothes.

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