Bon-Ton signs credit agreement

Milwaukee The Bon-Ton Stores has signed a new $675 million revolving credit agreement.

Bon-Ton said the three-and-a-half year senior secured asset-based credit facility replaces the company’s $800 million asset-based revolving credit facility that was scheduled to mature in March 2011.

Bon-Ton said the three-and-a-half year senior secured asset-based credit facility replaces the company’s $800 million asset-based revolving credit facility that was scheduled to mature in March 2011.

Bank of America NA will serve as administrative agent on the new facility. Bank of America Merrill Lynch, GE Capital Markets and Wells Fargo Retail Finance LLC are acting as joint lead arrangers and joint book runners on the facility.

Bon-Ton said it will use the new credit facility for general corporate purposes. As in the $800 million credit facility, the only financial covenant for Bon-Ton is to maintain minimum borrowing availability of $75 million.

The company believes the new facility, coupled with a recently announced $75 million second lien term loan, will provide the retailer with increased liquidity.