The Neiman Marcus Group has announced it intends to refinance a portion of its existing indebtedness in a move to lower interest expense.
The company plans to amend and restate its existing senior secured term loan facility, increasing the principal amount of that facility to $2 billion, from $1.5 billion currently.
It said the proceeds of the incremental borrowings under the term loan facility will be used to repurchase or redeem the company’s $752.4 million principal amount outstanding of senior notes due 2015.
Neiman Marcus also intends to increase the size of its existing senior secured revolving credit facility from $600 million to $700 million.
The terms of the contemplated transactions are not yet final, and the company said it only intends to complete the refinancing if the purpose of lowering interest can be achieved.
