Style retailer rue21 (r21 Holdings, Inc.) stated that its formidable monetary standing enabled it to refinance its present time period mortgage, lower the price of funds and bolster obtainable liquidity, in line with an announcement.
“At this time is an thrilling day, as we have achieved our purpose of placing rue21 on a safe monetary footing in probably the most unprecedented of occasions,” rue21 Chief Monetary Officer Michele Pascoe stated in an announcement.
The retailer modified its asset-based credit score facility to bolster availability to $155 million due 2025 headed up by Financial institution of America, N.A. The modification comes with an increase to the FILO Mortgage through a collaborative effort between Tiger Finance and Bank of America.
“Financial institution of America and Tiger Finance will assist present rue21 with the working capital capability to assist our progress targets and to proceed to supply our loyal clients with an outstanding omnichannel buying expertise,” Pascoe stated.
She additionally added that the corporate’s decreased debt load exhibits its monetary formidability to provider and landlord companions.
rue21 says the brand new capital framework will let it velocity up strategic enlargement efforts, resembling omnichannel enhancements, to permit for extra participating consumer experiences.
The corporate just lately rolled out a loyalty rewards initiative referred to as rue rewards that has garnered greater than 2.8 million members. The retailer additionally opened three new bodily retail retailers, with one other 15 within the works for 2021. And in November, the corporate appointed previous HSN President Bill Brand to the place of CEO.
Pennsylvania-based rue21 runs greater than 673 retail areas in 45 states and on-line at rue21.com.
Individually, in April, information surfaced that Office Depot refinanced its asset-based credit score facility with a brand new five-year deal and had retired its time period mortgage credit score settlement due in 2022. The service provider’s new $1.3 billion asset-based credit score facility was composed of a $1.2 billion revolving credit score facility together with a $100 million FILO facility.