Stein Mart gets $250 million extended revolver with improved pricing

By Marisa Wong

Madison, Wis., Feb. 4 – Stein Mart, Inc. entered into a $250 million senior secured revolving credit facility on Feb. 3, according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Bank, NA is the sole lead arranger and sole bookrunner, administrative agent, collateral agent, a lender, swingline lender, letter-of-credit issuer.

The credit agreement matures on Feb. 3, 2020 and replaces the company’s existing $100 million senior secured revolver that was set to mature on Feb. 28, 2017.

Under the new facility, the company may borrow up to $250 million from time to time on a revolving basis for payment in February of a special cash dividend to shareholders, working capital, capital expenditures and general corporate purposes, including issuing standby and commercial letters of credit.

The facility provides better pricing terms than the previous facility, according to a press release.

Interest is equal to Libor plus 125 basis points to 175 bps, depending on quarterly average excess availability.

The credit agreement requires compliance with a 1.0 to 1.0 consolidated fixed-charge coverage ratio upon the occurrence and during the continuance of any covenant compliance event.

On Feb. 3, Stein Mart also entered into a master loan agreement with Wells Fargo Equipment Finance, Inc. as lender and Wells Fargo Bank, NA as administrative agent.

The company intends to request an initial $25 million equipment loan under the master loan agreement on or about Feb. 25, with the initial equipment loan maturing 36 months following disbursement, provided that any prepayment in full of amounts owed under the senior secured revolver will trigger mandatory prepayment of the equipment loan.

Stein Mart is a Jacksonville, Fla., operator of retail stores.

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