Bon-Ton Stores Inc (BONT): Financial Overhang Lifted, Shares Soar Over 50%
It’s a very rewarding trading day for investors in Bon-Ton Stores Inc (NASDAQ:BONT) with shares up over 50%, making the stock Wall Street’s bull of the day. The reason? The department store chain announced that it has amended its $880 million ABL Tranche A and Tranche A-1 credit facility, providing the Company with immediate flexibility and substantial additional liquidity under its current credit facility.
Nancy Walsh, Bon-Ton’s Executive Vice President and Chief Financial Officer, commented, “We are pleased with this amendment which immediately provides us with additional liquidity cushion and strengthens our financial flexibility through the holiday season. We appreciate the ongoing support of our bank group as our team continues to execute key operational and financial initiatives focused on positioning the business for both near- and long-term profitable growth.”
William Tracy, President and Chief Executive Officer, commented, “As we build our inventory position heading into the holiday season, we are pleased to have increased access to capital. We look forward to continuing to work closely with our vendor partners to ensure we are delivering quality merchandise and an exceptional shopping experience for our customers in our stores and online.”
The amendment is subject to certain terms and conditions. The Company has retained AlixPartners LLP and PJT Partners Inc. who will continue to provide operational and financial advisory services.
The Bon-Ton Stores with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 260 stores, which includes nine furniture galleries and four clearance centers, in 24 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers nameplates. The stores offer a broad assortment of national and private brand fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings. The Bon-Ton Stores, Inc. is an active and positive participant in the communities it serves.