Caleres announced it has exercised a portion of the accordion feature on its asset-based revolving credit facility. The exercise increases the available borrowing capacity under the facility by $100 million to a total of $600 million.
“We appreciate the strong support from our lenders and their confidence in the long-term outlook for Caleres,” said Ken Hannah, SVP, CFO. “This increase in our borrowing capacity—coupled with our ongoing efforts to reduce cash outflows—will help ensure Caleres has adequate liquidity to weather the current economic shutdown.”
Following this exercise, Caleres has in excess of $335 million of liquidity, including $175 million of cash, with no significant debt maturities until 2023.
In recent weeks, the company has outlined the actions it is taking to align the organization to this new reality. As a result of disciplined cash outflow management and strong e-commerce related sales to date, Caleres has maintained its cash position since it began to close its retail stores in mid-March. Consistent with this effort, Caleres has reduced its 2020 capital spending budget by 40 percent versus 2019 levels, to approximately $30 million.
Photo courtesy Caleres