City Sports, the Boston-based specialty athletic retailer with 18 stores in several markets on the East Coast, entered into a new credit agreement and term loan with Wells Fargo Capital Finance, part of Wells Fargo & Company.
The new credit agreement provides for a revolving credit facility with aggregate availability of up to $12 million, which City Sports has the option to increase up to a maximum of $20 million. The term loan is for an additional $4.5 million. City Sports will use the additional funds to expand its store count in new and existing markets over the next five years. The company’s plan is to open five stores a year over the next five years and beyond.
“Wells Fargo Capital Finance has been a great supporter of City Sports, and we are happy to extend our solid relationship. We are pleased with the terms of the new credit facility and the term loan and excited that we can begin to execute our expansion plans,” said Jim Kessler, City Sport’s Chief Financial Officer. “Our healthy financial condition, combined with these facilities, will enable us to build new stores in some of our most successful markets where we believe there is strong potential for growth as well as introduce the City Sports brand and signature experience to new customers in new markets”.
“Over the years, we have developed a successful relationship with the senior management team at City Sports,” said Jim Dore, President of Retail Finance and Commercial Services Group at Wells Fargo Capital Finance. “With this amended financing, we look forward to continuing that relationship and supporting the company in its plans for future growth.”
The company operates 18 metropolitan stores across the East Coast, with locations in Boston, Providence, New York, Philadelphia, Washington, D.C., Baltimore and Atlanta.