Bank of America Agents $150MM Sustainability-Linked Credit Facility for Guess

Apparel retail company Guess entered into a $150 million senior secured asset-based revolving credit facility with a term of five years. According to an 8K filed with the SEC, Bank of America is the agent for the facility, which includes a sustainability-linked component.

The facility amends and extends Guess’ existing $120 million North American credit facility. The amended facility has an option to further expand its total amount by up to $150 million, subject to certain conditions. Just as with Guess’ new European credit facility that was established earlier this year, the new North American credit facility will include annual interest rate and fee adjustments based on the company’s achievement of certain sustainability goals in its operating and manufacturing processes.

“We are very pleased to finalize this credit facility, which expands our access to capital in North America and extends our existing facility for another five years,” Carlos Alberini, CEO of Guess, said. “Combined with this year’s new €250 million European facility, the company will now have access to over $400 million of capital across both North America and Europe, which reflects our lenders’ confidence in our business strategies and financial position. Importantly, both facilities also include sustainability incentives, which align our financial and sustainability goals and underscore our commitment to protecting the environment by integrating sustainability into our operations.”