Better terms in new LNT credit facility
David Perry -- Furniture Today, October 31, 2007
Clifton, N.J. — Home furnishings specialty retailer Linens ’n Things (LNT) has entered into a new $700 million credit agreement with GE Capital Markets, replacing its previously existing $700 million facility, which was made with UBS Securities.
LNT said the new facility has “materially improved terms” relative to the former facility – including “increases in its advance rates on inventory and accounts receivable for its borrowing base computation as well as the elimination of all financial maintenance covenants.”
The 580-store retailer said liquidity position will be “significantly enhanced,” and noted, “All of the agent banks in the company’s former credit facility continue to be participants in the new credit facility.”
The parties to the facility are Linens ’n Things, Inc.; Linens ’n Things Center, Inc.; and Linens ’n Things Canada Corp.; which are each wholly-owned subsidiaries of Linens Holding Co.
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