Zumiez gets $100 million five-year senior secured revolving facility

By Susanna Moon

Chicago, Feb. 8 – Zumiez Inc. and subsidiary Zumiez Services Inc. as the lead borrower obtained a $100 million five-year senior secured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The company closed an asset-based revolving credit agreement last Friday with Wells Fargo Bank, NA as administrative agent.

The agreement includes a letter-of-credit sub-limit of $10 million.

Interest on the loans will be Libor plus 125 basis points to 175 bps, based on average daily availability. The unused fee is 25 bps.

Proceeds will be used for working capital and other general corporate purposes.

The facility replaces the company’s $25 million secured revolving credit facility with Wells Fargo, dated July 9, 2014, which was set to expire on Sept. 1, 2016.

The ABL facility will mature on Feb. 5, 2021. All obligations under the ABL facility are joint and several with Zumiez Services and guaranteed by certain of the registrant’s subsidiaries. The ABL facility is secured by a first-priority security interest in substantially all of the personal property (but not the real property) of the borrowers and guarantors.

Zumiez Inc. is a multi-channel specialty retailer Lynnwood, Wash.

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