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Destination Maternity refinances credit agreement

The nation’s largest maternity store retailer has gotten a reprieve on its credit facility.

On Wednesday, the company announced that it signed a commitment letter with Bank of America for a new five-year, $76 million facility. The new deal, which will refinance and replace the company’s existing $50 million asset-based loan and $25 million term loan, will result in annual interest savings of approximately $1.2 million and $1.4 million.

The closing of the new Bank of America facility is subject to customary conditions precedent, including due diligence and the negotiation and execution of final documentation. The senior secured facilities are expected to be entered into, and funded by the end of the year.

“We very much welcome this attractive refinancing package from Bank of America,” said Marla Ryan, the CEO of Destination Maternity. “The new facility is a testament to the transformation at Destination Maternity and puts our Company on a firm financial foundation.”
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