Saks.com, which was recently spun-off, has raised US $ 465 million in debt capital to drive business growth.
The digital division of Saks has closed on a syndicated US $ 350 million asset-based credit facility that was arranged by Bank of America.
Additionally, another US $ 115 million secured term loan (arranged by Pathlight Capital LP) has also been closed by Saks.com.
The capital, reportedly, will help Saks to finance its growth plans and initiatives in addition to running corporate operations.
There are also reports some portion of the term loan will also be used to fund ‘certain obligations’ to Hudson Bay Company (HBC).
Notably, Saks Fifth Avenue and its parent firm HBC had spun off the online business into a standalone entity Saks in March 2021 and this was in partnership with growth capital investor Insight Partners.
Saks Fifth Avenue, meanwhile with its 40-store fleet continues to run separately and is wholly owned by HBC.
A delighted Vince Phelan, CFO, Saks, said that its strong market position as well as improving economic environment will help Saks lead in luxury e-commerce.