Jan 6, 2009
Talbots shares jump after it secures committed credit
Jan 6, 2009
NEW YORK, Jan 6 (Reuters) - Talbots Inc (TLB.N) shares jumped 24 percent on Tuesday, a day after the women's apparel retailer said it entered into agreements with three banks to secure a total $150 million in committed lines of credit.
Talbots said it agreed with Mizuho Corporate Bank Ltd [MZFGAI.UL], Sumitomo Mitsui Banking Corp and the Norinchukin Bank to convert each of their existing uncommitted working capital lines of $75 million, $50 million, and $25 million, respectively, to committed lines.
Including Talbots' existing $50 million committed facility with Aeon (U.S.A.) Inc, a unit of Japan's Aeon Co Ltd, the apparel chain said it has secured $200 million of its $215 million total working capital borrowing capacity. The company, which is majority-owned by Aeon Co, said it is currently in discussions with a fourth lending bank to convert the remaining $15 million uncommitted facility to a committed facility.
Talbots, whose namesake brand sells classic fashions to women over 35, is trying to sell its underperforming J. Jill clothing brand. Like other apparel chains, Talbots' sales have been hurt by the deepening economic crisis, which has led consumers to cut back on nonessential purchases. Talbots shares were up 56 cents at $2.90 on the New York Stock Exchange in morning trade.
(Reporting by Martinne Geller)
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