Hastings Entertainment, the Amarillo, Texas-based multimedia entertainment retailer, amended its revolving credit facility by increasing it $20 million to $100 million. Dan Crow, v.p. finance and cfo, would not discuss why Hastings decided to do the financing now, but did say that with the amendment the company got lower interest rates. He also said that the existing facility was maturing in a year and he did not want to wait until the last minute to refinance or amend the terms of the loan.
"We are in retailing and from time to time in retailing you have to grow your business, so this is for future growth. [But there are] no specific uses planned," Crow said.
The Fleet Retail Group and CIT Group lead the deal that now expires August 29, 2011. Many of the terms and the conditions of the loan remain the same, including a $10 million availability reserve. Crow said Fleet and CIT were Hastings' existing lenders. "They are good bankers and understand the business model," he said.