Saks Incorporated Amends Revolving Credit Facility

Retailer Saks Incorporated (NYSE: SKS) (the “Company”) today announced that it has entered into an amendment to its existing revolving credit agreement. The amendment increases the maximum availability from $500 million to $600 million and extends the maturity date of this facility to March 28, 2018 from March 29, 2016 previously.

Kevin Wills, Executive Vice President and Chief Financial Officer of the Company, noted, “We are very pleased to complete the amendment to our revolving credit facility. Over the last few years, we have taken a number of actions to strengthen our capital structure and our overall financial flexibility, and this amendment is a continuation of that process. The amendment extends the facility’s maturity to five years and includes more favorable terms. We appreciate the continued support of our bank group and their participation in this enhanced facility.”

The amendment favorably revises certain terms of the existing revolving credit facility, including the interest rates and unused line fees. The new interest rates vary with usage and are in the range of LIBOR plus 1.5% to 2.0% compared to LIBOR plus 2.0% to 2.5% previously. The unused line fees also vary with usage and decrease to 0.25% to 0.375% per annum from 0.375% to 0.50% per annum previously. The amendment also increases the advance rate for eligible inventory that is included in the borrowing capacity formula to 90% from 85% previously.

On March 15, 2013, the Company announced its planned April 15, 2013 redemption of its $230.0 million 2% Convertible Senior Notes. The Company plans to use a combination of cash on hand and a draw on the revolving credit facility for the redemption.

Saks Incorporated currently operates 43 Saks Fifth Avenue stores, 65 Saks Fifth Avenue OFF 5TH stores, and saks.com. Saks Fifth Avenue is proud to be named a J.D. Power and Associates 2012 Customer Service Champion and is only one of 50 U.S. companies so named.

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