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.