Report: Neiman Marcus reworks $600 million debt

Dallas Impacted by a collapse in luxury spending, Neiman Marcus is hustling to renegotiate a $600 million credit line set to mature in October 2010, according to an article in the New York Post.

Deutsche Bank was the collateral agent on the revolving credit facility; however the high-end retailer is reportedly negotiating with several banks to refinance the loan, the article said.

According to two sources familiar with the situation, one refinancing option for Neiman is to obtain a new secured loan. These proceeds could be used to pay bondholders at a big discount, the article reported.

Besides contending with how to rework the loan, the high-end retailer has $3 billion in debt, $1.2 billion of which is unsecured.