Gottschalks completes amendment of credit facility
30 Jan '06
2 min read
Mid-market department store chain Gottschalks Inc informed that it has completed an amendment to its credit agreement with GE Commercial Finance's Corporate Lending business as part of management's strategy to reduce the Company's cost of funds.
The amended terms lower Gottschalks' overall interest expense and expand the loan facility.
The amended facility also provides a mutual option for the Company to extend the maturity date of the agreement to March 1, 2011.
The amended terms provide for the inclusion of four owned properties in the revolving credit facility following the completion of a mortgage refinancing. These properties currently carry remaining mortgages totaling approximately $16.4 million at a 9.4 percent interest rate and inclusion in the revolver would enable Gottschalks to reduce the interest rate to the low 6.0 percent range.
Gregory Ambro, Chief Administrative and Financial Officer, said, "Reduction of the company's interest expense has been and continues to be a priority for management."
"This action will help to mitigate the impact of the general rise in interest rates that we expect to continue in the near term. We are very pleased to have completed this amendment to our credit facility and we are thankful for the continued cooperation and support of our lenders," Ambro said.
Gottschalks Inc is a regional department store chain, currently operating 64 department stores and 6 specialty apparel stores in six western states, including California (39), Washington (11), Alaska (6), Oregon (3), Nevada (2) and Idaho (3).
Gottschalks offers better to moderate brand-name fashion apparel, cosmetics, shoes, accessories and home merchandise.
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