BOSTON (Thomson Financial) - Shares of Talbots Inc. soared for a second
consecutive day Thursday after the women's clothing retailer said it received a
much-needed $50 million term loan credit facility commitment to support its
turnaround plan.
The stock was up 18.5% at $10.21, making it the top gainer on the New York
Stock Exchange. Volume was 2.3 million shares, well above the full-day average
of 1.3 million shares. On Wednesday, shares rose 3.7%.
The Hingham, Mass.-based company on Wednesday said its majority shareholder
Aeon Co. Ltd. plans to provide the term loan credit facility. Talbots said the
loan will supplement its current existing working capital lines of credit of
$165 million and will increase the company's total working capital borrowing
capacity to $215 million.
Buckingham Research Group analyst Barbara Wyckoff on Wednesday said the new
term loan, combined with the company's $165 million in existing facility, should
"smooth execution" of Talbot's strategic plan.
"We believe the announcement should quell concerns about liquidity as
Talbots now has the funding it was seeking to meet working capital needs,"
Wyckoff said in a note to clients.
Casey Logan
cl/pc
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