Why Designer Brands Stock Jumped Today
Shares of Designer Brands (NYSE: DBI) have jumped today, closing out the session with a 12% gain, after the company announced new measures to strengthen its financial flexibility amid the COVID-19 pandemic. Designer Brands also provided investors with other updates regarding the business.
The shoe retailer, which operates the DSW chain, is retiring a $400 million revolver and replacing it with a new $400 million asset-based revolver (ABL) that matures in August 2025. The company drew $150 million from the ABL upon closing the new deal, which includes more generous covenants that provide greater financial flexibility compared to the old credit facility. Designer Brands also closed a $250 million secured term loan to further boost liquidity.
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Source Fool.com
