Belk Replaces Existing Financing With $1.275 Billion in Five-Year Credit Facilities

The October 20 announcement details a $900 million asset-based revolving credit facility and a $375 million first-in, last-out term loan. Both run for five years, replacing Belk’s previous ABL, FILO and securitization facilities.

Belk said the arrangement simplifies its capital structure and provides liquidity for working capital, seasonal inventory and general corporate purposes. Wells Fargo is administrative and collateral agent for both facilities; Pathlight is the FILO term loan’s managing agent.

Collateral includes inventory, receivables, real estate, equipment, intellectual property and Belk’s private-label credit card program. The $1.275 billion figure describes credit facilities, rather than an equity investment or a disclosed store-expansion budget.

The announcement does not specify how much additional cash is available after the refinancing. The operating backdrop includes Belk’s move into a smaller store concept…