Home / Business and Economy / Belk Secures $1.275 Billion to Fuel Growth
Belk Secures $1.275 Billion to Fuel Growth
20 Oct
Summary
- Belk closed $1.275 billion in new financing.
- New credit facilities provide enhanced financial flexibility.
- Financing supports investment in customers and omnichannel platform.
Belk, Inc. has announced the successful closing of $1.275 billion in new senior secured credit facilities, a significant financial development for the Southeastern United States-based regional department store. This opportunistic financing, secured on October 20, 2026, consists of a $900 million asset-based revolving credit facility and a $375 million first-in, last-out (FILO) term loan facility. Wells Fargo serves as Administrative Agent and Collateral Agent for these facilities, with Pathlight Capital acting as Term Loan Managing Agent for the FILO facility.
The new five-year financing replaces Belk's previous ABL, FILO, and securitization facilities. It is designed to provide the company with a more streamlined capital structure and improved liquidity. This enhanced financial flexibility is crucial for supporting Belk's working capital needs, seasonal inventory investments, and other general corporate purposes. The broad collateral base supporting these facilities includes inventory, receivables, real estate, equipment, and intellectual property, alongside the company's private-label credit card program.
Vince Phelan, Belk's Chief Financial Officer, highlighted the importance of this milestone, stating it reflects the continued strength of Belk's business and provides the necessary flexibility to invest in its operations and customer service. Keith Vercauteren of Wells Fargo expressed pride in expanding the relationship and delivering a flexible solution, while Matt Williams of Pathlight Capital noted the added liquidity and flexibility for Belk to execute its strategic priorities.
