Sotheby's Secures $200 Million In New Credit

NEW YORK (AP) — Sotheby's said Tuesday that it secured $200 million in new credit for use over the next three years.

The auction house said strong lender demand increased capacity by $50 million. In August, Sotheby's said it expected to raise $150 million from lenders.

CEO Bill Ruprecht said in a statement that the new debt "provides a longer term solution with more flexible covenants and borrowing base as well."

The credit is being extended by a group of lenders that includes GE Capital and HSBC Bank PLC. The interest rates to be paid generally equal Libor plus 4 percent to 4.5 percent. The fluctuation will depend on how much debt is outstanding. The deal closed on Monday.

An old credit line with Bank of America was set to expire in September 2010.

Shares of Sotheby's gained 26 cents to $16.12 in morning trading.