Talbots plans $50 million subordinated term loan

By Sara Rosenberg

New York, June 11 - The Talbots Inc. is planning on getting a $50 million unsecured subordinated working capital term loan due Jan. 28, 2012 from Aeon Co. Ltd., its majority shareholder, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

The loan is priced at Libor plus 500 basis points, and there is a 50 bps undrawn fee.

Proceeds will be used to support the company's turnaround plan.

The term loan would supplement the company's existing working capital lines of credit of $165 million, increasing total working capital borrowing capacity to $215 million.

Closing on the loan is expected to take place on July 15.

Talbots is a Hingham, Mass.-based specialty retailer and direct marketer of women's apparel, shoes and accessories.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.