Chico’s gets $100 million term loan, $100 million revolver due 2020

By Angela McDaniels

Tacoma, Wash., May 8 – Chico’s FAS, Inc. entered into a credit agreement on May 4 that provides for a $100 million term loan and a $100 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The maturity date for both is May 4, 2020.

The initial interest rate is Libor plus 150 basis points. The spread ranges from 125 bps to 175 bps depending on the company’s leverage ratio.

The initial commitment fee is 25 bps. It ranges from 20 bps to 30 bps.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the bookrunners and lead arrangers. JPMorgan Chase Bank, NA is the administrative agent. Bank of America, NA is the syndication agent.

At closing, the company drew the entire term loan and $24 million of the revolver and used the proceeds to pay off the commitment under its existing credit facility entered into on July 27, 2011.

The company's obligations under the agreement are guaranteed by some of its material U.S. subsidiaries.

Chico's is a Fort Myers, Fla.-based specialty retailer.

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