Destination XL Group amends ABL facility, adds $15 million FILO loan

By Sarah Lizee

Olympia, Wash., May 30 – Destination XL Group, Inc. amended its secured asset-based credit facility with Bank of America, NA on May 24 to include a new $15 million first-in, last-out term facility, according to an 8-K filing with the Securities and Exchange Commission.

The $140 million facility, which matures on May 24, 2023, replaces the sixth amended and restated loan and security agreement that was due to expire in October 2019.

The facility continues to provide a maximum committed borrowing of $125 million in revolver loans, which may be increased by an additional $50 million.

There were no changes to the sublimit of $20 million for commercial and standby letters of credit or to the sublimit of up to $15 million for swingline loans.

There can be no voluntary repayment on the FILO facility during the first year. After that, it may be repaid, in whole or in part, subject to some conditions.

Revolver borrowings bear interest at Libor plus 125 basis points or 150 bps, and FILO borrowings bear interest at Libor plus 275 bps or 300 bps, in each case depending on excess availability.

Initially, interest on the revolver is Libor plus 125 bps and interest on the FILO facility is Libor plus 275 bps.

If availability under the revolver at any time is less than the greater of 10% of the revolving loan cap and $7.5 million, then the company is required to maintain a minimum consolidated fixed charge coverage ratio of 1 to 1 until availability has exceeded the greater of 10% of the revolving loan cap and $7.5 million for 30 consecutive days.

Bank of America is the lead arranger and bookrunner and Wells Fargo Bank, NA is the syndication agent.

The revolver will be used for working capital, capital expenditures and other general corporate purposes. The FILO facility will be used primarily to fully repay the outstanding balance of $11.5 million under its existing term loan facility with Wells Fargo.

Based in Canton, Mass., Destination XL is a specialty retailer of big and tall men’s apparel.

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