SAKS OFF 5TH CLOSES ON REVOLVING CREDIT FACILITY
Luxury off-price retailer Saks Off 5th has closed on a syndicated $125 million asset-based five-year revolving credit facility jointly arranged by Citibank and Citizens and a $20 million term loan arranged by Callodine Commercial Finance.
The asset-based revolving credit facility, which is undrawn at closing, will be utilized for general corporate purposes, ongoing working capital, and capital expenditures to support the online business. The company’s already strong balance sheet will be bolstered by the term loan proceeds, which follows a recent capital raise valuing the Saks Off 5th e-commerce business at approximately $1 billion.
“Saksoff5th.com continues to experience outstanding growth, and we see great opportunity ahead as we work to enhance our digital capabilities and customer experience,” said Luke Coffey, chief financial officer. “These transactions further solidify our strong liquidity position and support our investment plan, providing us with additional financial flexibility.”
The Saks Off 5th’s store fleet, consisting of 105 locations across the U.S. and Canada, is wholly owned by HBC.
