Ascena to continue paying down debt, is ‘comfortable’ with liquidity

By Devika Patel

Knoxville, Tenn., Sept. 24 – Ascena Retail Group Inc. is “comfortable” with its liquidity and plans to keep paying down debt.

“We are comfortable with our liquidity position and remain focused on improving our overall financial flexibility by continuing to reduce our outstanding debt,” executive vice president and chief financial officer Robert Giammatteo said on the company’s fourth quarter and year ended Aug. 4 earnings conference call on Monday.

Cash and cash equivalents were $238.9 million as of Aug. 4, 2018, compared to $325.6 as of July 29, 2017.

The company ended the fourth quarter with total debt of $1,372,000,000, which represents the balance remaining on its term loan. In addition, Ascena had $473 million of borrowing availability under its revolving credit facility.

The company made $225 million of principal repayments of its term loan debt during the year.

Between revolver availability and cash, the company had $712 million of liquidity at quarter-end.

The company’s net debt to trailing 12-months EBITDA is currently 2.5x.

Ascena is a Mahwah, N.J.-based specialty retailer offering clothing, shoes and accessories for misses and plus-size women.

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