Bon-Ton Stores Inc (NASDAQ: BONT) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced an amendment to a credit facility that will provide it with immediate flexibility as well as additional liquidity. Of course, this led to excitement among investors, sending the stock on an explosive run toward the top. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:32), BONT is trading at $0.98 per share after a gain of $0.37 per share or 60.24% thus far today.
BONT Gains On Amended Credit Facility
As mentioned above, Bon-Ton Stores is having an incredibly strong start to the trading session this morning after the company announced that it has amended a $880 million ABL Tranche A and Tranche A-1 credit facility. The amendment will provide BONT with additional liquidity as well as immediate flexibility under the current credit facility. Of course, the amendment is subject to certain terms and conditions. However, the company has hired AlixPartners LLP and PJT Partners Inc to continue to provide operational and financial advisory services. In a statement, Nancy Walsh, Executive Vice President and CFO at BONT, had the following to offer:
“We are pleased with this amendment which immediately provides us 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.
The above statement was followed up by William Tracy, President and CEO at Bon-Ton Stores. Here’s what he had to say:
“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.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on BONT. In particular, we’re interested in following the company through continued growth that becomes more feasible with the amendment to the credit facility. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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