Saks.com has secured a new round of financing to back its growth strategy as it aims to take advantage of the continuing ecommerce boom and economic recovery. The luxury ecommerce platform has closed on a syndicated $350 million asset-based five-year revolving credit facility arranged by Bank of America, N.A., and a $115 million senior secured term loan arranged by Pathlight Capital LP.
In March 2021, Hudson’s Bay Company (HBC) — Saks Fifth Avenue’s parent company — and venture capital firm Insight Partners entered into a partnership to take the retailer’s ecommerce business and create a standalone entity called Saks.
“Given our strong market position and the improving economic environment, Saks is poised to lead in luxury ecommerce,” said Vince Phelan, CFO of Saks in a statement. “These transactions and their favorable terms are a reflection of the strength of our business and capital position. Furthermore, this financing, combined with cash we already have on hand, ensures we have substantial liquidity and flexibility to execute on our strategic plans and build on the upward trajectory we are already seeing in our business.”
The asset-based revolving credit facility, undrawn at closing, remains available to Saks for general corporate purposes or growth initiatives. A portion of the proceeds from the term loan will be used to fund certain obligations to HBC in connection with the company’s recent transaction, and the remaining amount will be available to Saks.
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