Bon-Ton Secures New Credit Facility

Staff -- Home Textiles Today, 12/14/2009 12:00:00 AM

York, Pa. —

The Bon-Ton Stores has lined up a new $675 million credit facility to replace its existing $800 million revolver, which was schedule to mature in March 2011.

The only financial covenant in the new agreement is a minimum borrowing availability of $75 million, as is also the case for its current facility, the company reported.

Bank of America, N.A. will serve as administrative agent on the asset-based facility, with by Bank of America Merrill Lynch GE Capital Markets, and Wells Fargo Retail Finance as joint lead arrangers and joint book runners.

In mid-November, the department store retailer announced it had closed on a $75 million second-lien term loan credit.