Brown Shoe Co Announces Amendment And Extension Of Credit Agreement

(RTTNews) - Brown Shoe Company (BWS) announced it has entered into an amended and restated credit agreement, which extends its senior secured asset-based revolving credit facility to December 2019, lowers the interest rate by 100 basis points, reduces unused fees and provides for less restrictive covenants and more flexibility.

The company's borrowing capacity under the agreement has been increased to $600 million, and the agreement includes an accordion feature, which allows the company to request an increase in the size of the facility to $750 million in the aggregate.

The credit facility will primarily be used for working capital and as backing for trade letters of credit. It may also be used for investments in infrastructure, potential acquisitions and general corporate purposes.