Amendment caps a months-long review of operations
HOLLYWOOD — Record retailer Tower Records, which has been looking for ways to raise money, said Monday it has substantially completed an amendment to its credit facility that will provide ready availability of capital into next year.
Previously, the Sacramento-based company had $195 million in credit available through year’s end, with the amount set to drop to $100 million thereafter. Under terms of the amendment, Tower will have up to $205 million available through Dec. 31 and $195 million thereafter.
The amendment caps a months-long review of operations in which execs have sought to cut costs and boost efficiency.
“We believe this to be a vote of confidence from our banks, which firmly demonstrates their support of Tower’s business plan and acknowledges the improvements we have made to date,” Tower chief financial officer DeVaughn Searson said.
Tower, which operates 173 stores worldwide, said it expects to complete its credit-facility amendment by the end of this week.