BON TON STORES INC
BANK REFERENCE
REPORT DATE: Dec 11, 2009
 
BON TON STORES INC GCS ANALYST RATING: E- (HIGH RISK )
2801 E MARKET ST INDUSTRY: DEPT STORES & CATALOGS
YORK,  PA USA  17402 SIC CODE: 531100
Account Number:  Stock Symbol: BONT
WEBSITE: WWW.BONTON.COM/ INDUSTRY ANALYST: JOHN ANALYST
  < DELETE COMPANY >
PRESENTATIONS
Bon Ton Stores Webinar Presentation - May 29, 2009
Bon Ton Stores Webinar Presentation - March 17, 2009
Description Of Business
Analyst Commentary: "NEW CREDIT FACILITY IN PLACE "
On October 31, 2009, Bon Ton had borrowings rights on an $800 million revolving credit facility. As of that date, there was around $391 million outstanding on the revolver as well as $64 million in letters of credit. After the borrowing base calculation, the availability had been reduced to $245.6 million as of that date. This facility has a minimum availability covenant of $75 million.

Subsequent to the close of the third quarter and before the official 10-Q filing, the company has provided an updated availability figure. There was $361 million available on the facility as of November 28, 2009. Accounting for the $75 million minimum availability covenant, there was $286 million in true availability as of that date.

Additionally, on December 4, 2009, the firm replaced the existing credit facility. The new credit facility will run through June 4, 2013 and has a ceiling of $675 million. The new facility has the same $75 million minimum availability covenant.

Also subsequent to the close of the third quarter, Bon Ton Stores secured a $75 million term loan from a group of lenders. The term loan had not been completed by the end of the third quarter, so the amount is not included on the balance sheet. The term loan will be used to pay down revolver borrowings.

The company's balance sheet is loaded with debt from the Carson's acquisition. Total debt including capital leases was $1.23 billion at the end of the third quarter, down from $1.32 billion at the end of the third quarter last year. The debt remains nearly entirely long-term. The bulk of the debt is its $510 million in senior notes that mature in 2014. The company also has mortgage notes as well as the revolver borrowings. There was just $11.3 million classified as current. The current debt consisted of $6.4 million due on the mortgages and $4.9 million in capital leases.

Bon Ton closed the quarter with just $15.7 million in cash, a typical low number from this retailer.

  START DATE: 03/06/2006
FACILITY TYPE:  REVOLVER - ALL ASSETS
REF NUM Status Date Facility Amount Direct Usage LC Usage Total Owing Net Availability Covenant Compliance Due Date
1 10/31/2009 800,000,000 391,000,000 64,000,000 455,000,000 245,600,000 IC 03/06/2011
2 08/01/2009 800,000,000 300,000,000 50,000,000 350,000,000 173,700,000 IC 03/06/2011
3 05/02/2009 800,000,000 350,000,000 49,000,000 399,000,000 164,600,000 IC 03/06/2011
4 01/31/2009 1,000,000,000 320,100,000 33,200,000 353,300,000 268,700,000 IC 03/06/2011
5 11/01/2008 1,000,000,000 484,000,000 19,400,000 503,400,000 214,000,000 IC 03/06/2011
On December 4, 2009, Bon Ton Stores entered into a $675.0 million 3.5-year senior secured asset-based revolving credit facility, which will expire on June 4, 2013. This New Credit Facility replaces the old credit facility that was scheduled to mature on March 6, 2011.

The financial covenant contained in the New Credit Facility requires that the minimum excess availability be at least $75.0 million at all times.

Borrowings under the New Credit Facility will be at either (A) Adjusted LIBOR (based on the highest of (i) the British Bankers Association LIBOR Rate based on an interest period selected by the Borrowers, (ii) the British Bankers Association LIBOR Rate based on an interest period of three months and (iii) 1.25%) plus the applicable margin or (B) a base rate (based on the highest of (i) the Federal Funds Rate plus 0.5%, (ii) the Bank of America prime rate, and (iii) Adjusted LIBOR based on an interest period of one month plus 1.0%) plus the applicable margin. The applicable margin is determined based upon the excess availability under the New Credit Facility.

The New Credit Facility is secured by a first priority security position on substantially all of our current and future assets, including, but not limited to, inventory, general intangibles, trademarks, equipment, certain real estate and proceeds from any of the foregoing, subject to certain exceptions and liens

BANK OF AMERICA
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