Destination Maternity signs credit agreement with Bank of America

Destination Maternity Corporation has signed a commitment letter with Bank of America for a new five year 76 million dollars facility to refinance and replace the company’s existing 50 million dollars asset based loan and 25 million dollars term loan. The company said in a statement that this new facility will result in annual interest savings of approximately 1.2 - 1.4 million dollars.

Commenting on the development, Marla Ryan, the CEO of Destination Maternity said: “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.”

For its second quarter, the company reported 1.9 percent decrease in net sales to 96.4 million dollars, negatively impacted by the net closure of 27 retail stores, partially offset by an increase in comparable sales. However, comparable sales increased 1.2 percent, compared to a decrease of 3.4 percent in the second quarter of fiscal 2017.

Picture:Destination Maternity website