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Dillard’s Amends $800M Revolving Credit Facility

Dillard’s Inc. has taken care of its liquidity needs for the next five years.

The department retailer has amended and extended its $800 million senior secured revolving credit facility, consistent with the its liquidity needs.

A $200 million expansion option continues in place with the newly amended facility, which matures on April 28, 2026.

The amended agreement also doesn’t have any stipulations attached, as long as $80 million is available in the facility.

Dillard’s said it can tap into the $800 million to keep business humming, using the funds to finance working capital, issue letters of credit, facilitate capital expenditures, repay existing debts and repurchase share.

Throughout 2020, Dillard’s has worked on managing inventory and expenses to preserve its cash flow during the Covid-19 pandemic, and ended its 52-week period on Jan. 30, 2021, with $360 million cash, the company said earlier this year. Inventory levels were down by 26 percent. The retailer also lowered operating expenses by $123 million.

For the year ended Jan. 30, Dillard’s purchased $95.6 million, or 2.2 million shares, of Class A common stock under its $500 million share repurchase program. At the end of the year, authorization of $173.1 million remained under the program. Total shares outstanding at year end were 22.0 million, versus 24.2 million at the end of the prior fiscal year.

Dillard's tapped influencer Emily Hertz of Born on Fifth to create a limited fashion capsule with private label Antoni Melani.
Emily Hertz of Born on Fifth Courtesy

In February, the Southern retailer showed signs of a return to business as usual, launching the first in a trio of influencer-led capsules created with its top private label in women’s fashion. Born on Fifth for Antonio Melani takes inspiration from NYC-born, Atlanta-based “lifestyle blogger” Emily Hertz’s passion for chic chinoiserie and ultra-feminine florals, which Dillard’s vice president of merchandising Alexandra Dillard Lucie said at the time had already received a tremendous response” from the tastemaker’s “highly engaged audience.”

“This effort represents everything we are trying to accomplish for our clients at Dillard’s—providing newness and freshness in fashion with the high-quality standards they have come to expect from us,” the merchandising VP added.

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The curated capsule features the Southern-garden-meets-cottagecore aesthetic beloved by more than 80,000 devotees following @bornonfifth on Instagram, where an endless stream of photos documents extravagant pastel wallpaper, sumptuous floral arrangements, twee table settings, saccharine mommy-and-me moments and strappy Gucci sandals—a staple for influencers everywhere.

Available in sizes 0-16, items in the Antonio Melani x Born on Fifth collection include floaty frocks, pluff-sleeve blouses, a skirt and a hair bow, with two dress options for babies and little girls in sizes 12 months to 24 months and 2T-6X. The blue-and-off-white line launched in select Dillard’s stores on starting the week of March 8.

Hertz, a former Spanx VP, said she has “long been a fan of Antonio Melani and think the brand is a perfect fit for the feminine Born on Fifth aesthetic.”

“I’m so proud of the sophisticated, chinoiserie-inspired, perfect-for-spring pieces,” she added, “and hope my first collection brings ethereal elegance to wardrobes around the world.”