Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Fashion apparel company Express Inc (NYSE: EXPR) shares are soaring Thursday premarket after it announced it has entered into a definitive loan agreement with Sycamore Partners as a lead lender, along with Wells Fargo and Bank of America Merrill Lynch, that strengthens its liquidity position by an additional $140 million.
The new financing includes a $90 million FILO term loan with a maturity date of May 24th 2024 and a $50 million delayed draw term loan that is to be repaid upon receipt of Express’ CARES Act tax refund expected to be received in Q2 2021.
It adds to the business’ existing $250 million asset-based loan facility from which it previously drew $165 million.
“We continue to effectively manage our financial liquidity. I expect this additional capital will support the Company through the duration of the pandemic, and allow us to continue the important and transformational work of the EXPRESSway Forward strategy,” commented Tim Baxter, CEO of Express.
The fashion retailer’s stock price is up 67.96% premarket, priced at $1.73.
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