Key Developments For Charming Shoppes, Inc.
Charming Shoppes, Inc. (CHRS.O) (Nasdaq)
Charming Shoppes, Inc. Announces Completion of Sale of Private Label Credit Card Program To Alliance Data Systems Corporation
Charming Shoppes, Inc. announced the completion of the sale of Charming Shoppes' credit card receivables programs to Alliance Data Systems Corporation. As previously announced, Charming Shoppes and Alliance Data have also entered into a 10 year operating agreement for the servicing of Charming Shoppes' private label credit card receivables program. Charming Shoppes received net cash proceeds of approximately $136 million related to the credit card receivables transaction. This transaction consisted of the sale of Charming Shoppes' private label credit card portfolio, along with certain other assets and liabilities that are required to support these card programs, and the monetization of Charming Shoppes' consolidated balance sheet asset Investment in Asset-Backed Securities. Gross proceeds from the transaction were approximately $166 million, of which approximately $30 million was utilized to fund the termination of contractual obligations related to the credit card receivables programs and exit costs. Previously, Charming Shoppes' Investment in Asset-Backed Securities was held on its consolidated balance sheet. Under the terms of the operating agreement, Alliance Data has assumed the operation of Charming Shoppes' private label credit card programs for its Lane Bryant, Fashion Bug and Catherines brands.
Alliance Data Systems And Charming Shoppes, Inc Sign Long-Term Agreements Including Sale Of Existing Private Label Credit Card Portfolios
Alliance Data Systems and Charming Shoppes, Inc announced a long-term agreement where Alliance Data will assume operation of Charming Shoppes' private label credit card programs on an ongoing basis as well as acquire the credit card files and service center operations associated with Charming Shoppes' branded card programs. Alliance Data expects the transaction to close by the end of the year. Under terms of the agreements, Alliance Data will assume the operation of the Lane Bryant, Fashion Bug and Catherines credit card program, portfolio and securitization master trust, which combined represents 4.5 million active accounts generating $680 million in annual credit sales and $500 million in account receivables. The transaction consists of Alliance Data purchasing existing accounts and the rights to new accounts along with certain other assets that are required to support the securitization program including retained certificates and interests, cash collateral accounts and an interest-only strip, totaling a combined $140 million.
Charming Shoppes, Inc. Gets New $225 Million Credit Facility-AP
The Associated Press reported that Charming Shoppes, Inc. said that it worked out a three year deal for a new $225 million senior secured revolving credit agreement. The facility, which replaces a $375 million revolving credit agreement, will provide funds through July 2012. The new agreement also has an option that allows the Company to boost its maximum credit up to $300 million. The facility can be used for general corporate purposes, with up to $100 million put toward letters of credit.
Charming Shoppes, Inc. Ceases Exploration of Sale of Figi's Food Business
Charming Shoppes, Inc. announced that it has discontinued its exploration of the sale of its Figi's Gifts in Good Taste catalog business, based in Wisconsin.
Charming Shoppes, Inc. Appoints James P. Fogarty As President And Chief Executive Officer
Charming Shoppes, Inc. announced the appointment of James P. Fogarty as President and Chief Executive Officer and a member of the Company's board of Directors.
