Richmond, Va. — Circuit City’s chief lenders have raised the chain’s credit limit from $500 million to $1.3 billion under terms of a new loan agreement that went into effect Jan. 31.
The deal, brokered by Bank of America, Banc of America Securities, Wells Fargo, JPMorgan Chase, GE Capital and Wachovia, replaces an earlier credit agreement and extends the expiration date from 2009 to 2013.
The new contract sets a $50 million limit on borrowing by Circuit City’s InterTAN Canadian subsidiary, and allows the chain to request an additional $300 million over the initial $1.3 billion credit line. The loan will continue to be secured by the retailer’s inventory and credit card receivables.
