Guess Enters Into $200 Million Credit Facility
Guess? Inc. announced it has entered into a five-year, $200 million credit facility with a global group of banks led by J.P. Morgan Securities LLC and Bank of America Merrill Lynch. The new credit facility replaces the retailer’s existing $85 million revolving line of credit, which was scheduled to mature Sept. 30, 2011.
The new financial arrangement will fund the retailer’s international expansion, said Maurice Marciano, Guess’ chairman of the board.
“Our credit facility, combined with the company's operating cash flows and strong balance sheet and cash position, provides us the platform to access well over $1 billion of potential capital to pursue our global expansion efforts and any other opportunities.”
In a Securities & Exchange Commission document released in June, Guess noted that global expansion will be the cornerstone of the retailer’s growth strategy and half of the company’s revenues were made outside of America and Canada.
Guess plans on opening 125 to 130 retail stores in Europe in fiscal 2012, and a quarter of those stores will be owned and operated by Guess. The rest will be developed with European-based partners.
The retailer plans to open 42 stores in the United States and Canada in fiscal 2012 and 70 stores across Asia during the same time period.—Andrew Asch
