MOORESTOWN, N.J.--(BUSINESS WIRE)--Destination Maternity Corporation (NASDAQ: DEST) (the “Company”) announced today that it has signed a commitment letter with Bank of America for a new five year $76 million facility to refinance and replace the Company’s existing $50 million asset based loan and $25 million term loan. The new facility will result in annual interest savings of approximately $1.2 - $1.4 million.
Marla Ryan, the CEO of Destination Maternity commented, “We very much welcome this attractive refinancing package from Bank of America. The new facility is a testament to the transformation at Destination Maternity and puts our Company on a firm financial foundation.”
“We would like to thank Wells Fargo and Pathlight for their past support and very much look forward to the new financing and commercial partnership with Bank of America.”
The closing of the new Bank of America facility is subject to customary conditions precedent, including due diligence and the negotiation and execution of final documentation. The senior secured facilities are expected to be entered into and funded by the end of the year.
The Company cautions that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this release or made from time to time by management of the Company, including those regarding various business and financing initiatives, involve risks and uncertainties, and are subject to change based on various important factors. Investors should understand that, as a result, there can be no guarantee that the credit facility will be consummated on the terms contemplated in the commitment letter described in this press release or at all. The following factors, among others, could cause actual results to differ materially from those expressed or implied in any of the forward-looking statements in this press release: the strength or weakness of the retail industry in general and of apparel purchases in particular; our ability to successfully manage our various business initiatives; our ability to enter into definitive documentation for the Bank of America facility in the timeframe expected or at all; our ability to successfully manage our real estate relationships; overall economic conditions and other factors affecting consumer confidence, demographics and other macroeconomic factors that may impact the level of spending for apparel (such as fluctuations in pregnancy rates and birth rates), availability of suitable store locations, our ability to develop and source merchandise and other factors set forth in the Company’s periodic filings with the Securities and Exchange Commission. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct and persons reading this release are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this release. The Company assumes no obligation to update or revise the information contained in this release (whether as a result of new information, future events or otherwise), except as required by applicable law.
About Destination Maternity
Destination Maternity Corporation (Nasdaq: DEST) is the world's largest designer and retailer of maternity apparel. As of August, 4, 2018, Destination Maternity operates 1,114 retail locations in the United States, Canada and Puerto Rico, including 480 stores, predominantly under the trade names Motherhood Maternity®, A Pea in the Pod® and Destination Maternity®, and 634 leased department locations. The Company also sells merchandise on the web primarily through its brand-specific websites, motherhood.com and apeainthepod.com, as well as through its destinationmaternity.com website. Destination Maternity has international store franchise and product supply relationships in the Middle East, South Korea, Mexico, Israel and India. As of August 4, 2018, Destination Maternity has 188 international franchised locations, including 11 standalone stores operated under one of the Company's nameplates and 177 shop-in-shop locations.