Stein Mart amends, extends $275 million five-year credit agreements

By Sarah Lizee

Olympia, Wash., Sept. 18 – Stein Mart, Inc. amended and extended its existing revolving credit agreement with Wells Fargo Bank and its term loan agreement with Gordon Brothers Finance Co., according to a press release.

The agreements are coordinated through an intercreditor agreement and provide for combined borrowing availability of $275 million.

The maturities were extended to Sept. 18, 2023 from Feb. 3, 2020.

The amendment also removed cash dominion with it applying in the future only if excess availability is less than 12.5% of the loan cap.

Also, the Wells Fargo revolving borrowing limit was increased to $240 million from $225 million with an increase in the inventory advance rate.

The Gordon Brothers term loan amount was decreased to $35 million from $50 million, and the borrowing rate was decreased by 25 basis points.

Stein Mart said there were also administrative improvements that will enhance liquidity.

The impact of the new agreements will decrease annual borrowing costs by about $1 million and will result in all loan amounts outstanding being classified as long-term obligations, the company said.

Borrowings remain available for working capital and general corporate purposes, as well as to support the company’s letter-of-credit requirements.

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

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