Saks Off 5th closes on loan to further liquidity

Saks Off 5th has closed on a syndicated 125 million dollars asset-based five-year revolving credit facility jointly arranged by Citibank and Citizens and a 20 million dollar term loan arranged by Callodine Commercial Finance.

In a statement, Luke Coffey, chief financial officer of Saks Off 5th, said, “SaksOFF5TH.com continues to experience outstanding growth, and we see great opportunity ahead as we work to enhance our digital capabilities and customer experience. These transactions further solidify our strong liquidity position and support our investment plan, providing us with additional financial flexibility.”

The asset-based revolving credit facility, which is undrawn at closing, will be utilized for general corporate purposes, ongoing working capital and capital expenditures to support the online business. Saks Off 5th’s strong balance sheet will be bolstered by the term loan proceeds, which follows a recent capital raise valuing the Saks Off 5th e-commerce business at approximately 1 billion dollars.