Minneapolis-based, Gander Mountain Co. has expanded a $175 million revolver with Fleet Retail Group, a subsidiary of Bank of America. The current revolver is $225 million and could be increased to $300 million. The new facility will give Gander additional flexibility for its expansion plans, which include adding 18 to 22 new stores next year, noted Shannon Burns, director of investor relations at Gander. The syndication process stemmed from a longstanding relationship with Fleet Retail, she said. GE Capital, Wells Fargo Foothill and CIT are also members of the syndicate. Burns said Sally Sheehan at Bank of America had been instrumental in the process.
The outdoor goods retailer entered into the old revolver in 2001 to meet liquidity and capital needs. As of Oct. 2004, Gander had $41.3 million remaining under the facility which was priced at LIBOR plus 1 3/4-2 1/4% depending on EBITDA. The credit was set to expire on June 2007. Burns declined comment on the new pricing.