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Destination Maternity Enters $61M Credit Facility With Wells Fargo

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Destination Maternity Corporation (NASDAQ: DEST), the world's leading maternity apparel retailer, today announced that it has entered into a new $61 million revolving credit facility with Wells Fargo Bank, N.A.  The new credit facility replaces the Company's $55 million revolving credit facility with Bank of America, N.A., which was due to mature on January 13, 2013.  The Company also announced that, as of November 1, 2012, it has repaid the remaining principal amount ($13.4 million) of its senior secured Term Loan, which was due to mature on March 13, 2013.

Ed Krell, Chief Executive Officer of Destination Maternity Corporation, noted, "We are very pleased to announce our new credit facility with Wells Fargo and the repayment of the remaining balance of our Term Loan (which had an original principal balance of $90 million in March 2007).  The repayment of our Term Loan completes a dramatic decrease in our financial leverage which we have accomplished over the past several years.  Giving effect to this Term Loan repayment, over the past six years, our total debt has decreased from $118 million to $2 million, and our annual interest expense has decreased from $15 million to less than $1 million.  In addition, our new credit facility provides us with continued significant financial and operating flexibility as we continue to execute on our strategic plan."

Posted-In: News Financing

 

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