Gottschalks soars on credit facility news
Shares of Gottschalks Inc. (NYSE: GOT) soared in today’s trading after the department store operator announced before the opening that it had $200 million under its credit facility after completing a second amendment.
The Fresno, Calif.-based company said the new agreement extends until 2012. The department store operator also said the credit facility gives the company the ability to implement its share repurchase program.
"The expanded and extended facility provides us with a stronger financial structure and greater flexibility,” Greg Ambro, Gottschalks’ chief operating officer, said in a statement. “Our increased borrowing capacity now gives us additional resources to direct toward our plans for an accelerated new store opening program and the completion of an increased number of store remodels."
In today’s trading, GOT shares soared 27.65%, or $1.20, to $5.54. Over the last 52 weeks, shares have ranged from $4.19 to $15.37.
