Eddie Bauer Holdings, Inc. said it has executed an amendment to its $225 million term loan agreement including an agreement to issue to its lenders $0.01 exercise price warrants exercisable for 19.9% of the company's common stock on a fully-diluted basis, or around 7.84 million shares.


 


The agreement is with various lenders, with Goldman Sachs Credit Partners (NYSE: GS), as syndication agent, and JP Morgan Chase Bank, N.A. (NYSE: JPM), as administrative agent.


 


The warrants are subject to adjustment for any conversion of Eddie Bauer's 5.25% convertible senior notes due 2014, new capital infusions of less than $40 million and exercise of equity compensation grants.


 


The company has $75 million of the notes outstanding.