Sotheby’s raises asset-based revolvers to $850 million, extends them

By Tali Rackner

Norfolk, Va., Aug. 25 – Sotheby’s amended and restated the asset-based revolving credit facilities for its agency segment and its finance segment via General Electric Capital Corp. on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The amendment increases the aggregate commitments under the credit agreements to $850 million from $600 million, including a $50 million incremental revolving credit facility with higher advance rates against certain assets and higher commitment and borrowing costs.

The incremental facility matures on the first anniversary of the closing of the credit agreements (Aug. 21, 2015) but may be extended for an additional 365 days on an annual basis.

As a result of this increase, the borrowing capacity of the agency credit agreement will increase to $300 million from $150 million and the borrowing capacity of the finance credit agreement will increase to $550 million from $450 million.

In addition, the amendment extends the maturity date of the credit agreements to Aug. 22, 2019 from Feb. 13, 2019, exclusive of the incremental facility.

It also increases the advance rates (and removes certain caps with regards to) inventory and includes some of Sotheby's trademarks in determining the borrowing base availability of the agency credit agreement.

Furthermore, the amendment raises the maximum permissible amount of net outstanding auction guarantees to $600 million from $300 million.

Sotheby's is a New York-based company that engages in art auction, private sales and art-related financing activities.

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