City Sports Announces Entry Into New Credit Agreement and Term Loan With Wells Fargo Capital Finance

BOSTON, Aug. 1, 2011 /PRNewswire/ -- City Sports, the Boston-based specialty athletic retailer with 18 stores in several markets on the East Coast, today announced it has entered into a new credit agreement and term loan with Wells Fargo Capital Finance, part of Wells Fargo & Company (NYSE: WFC).  

The new credit agreement provides for a revolving credit facility with aggregate availability of up to $12 million, which City Sports has the option to increase up to a maximum of $20 million.  The term loan is for an additional $4.5 million. City Sports  will use the additional funds to expand its store count in new and existing markets over the next five years.  The company's plan is to open five stores a year over the next five years and beyond.

"Wells Fargo Capital Finance has been a great supporter of City Sports, and we are happy to extend our solid relationship. We are pleased with the terms of the new credit facility and the term loan and excited that we can begin to execute our expansion plans," said Jim Kessler, City Sport's Chief Financial Officer.  "Our healthy financial condition, combined with these facilities, will enable us to build new stores in some of our most successful markets where we believe there is strong potential for growth as well as introduce the City Sports brand and signature experience to new customers in new markets".

"Over the years, we have developed a successful relationship with the senior management team at City Sports," said Jim Dore, President of Retail Finance and Commercial Services Group at Wells Fargo Capital Finance. "With this amended financing, we look forward to continuing that relationship and supporting the company in its plans for future growth."

About City Sports

An award-winning specialty athletic retailer headquartered in Boston, City Sports is the premiere destination for city athletes and active lifestyle enthusiasts. The company operates 18 metropolitan stores across the East Coast, with locations in Boston, Providence, New York, Philadelphia, Washington, D.C., Baltimore and Atlanta. City Sports offers a comprehensive assortment of performance footwear, equipment and apparel from leading athletic and special niche brands, as well as its proprietary "CS by City Sports" line, all focused on outfitting the city athlete who participates in running, triathlons, training, cycling, swimming and tennis. City Sports was named one of 2010's "50 Best Running Stores in America" by the Independent Running Retailers Association in conjunction with Formula4Media. www.citysports.com

About Wells Fargo Capital Finance

Wells Fargo Capital Finance is the trade name for certain asset-based lending, accounts receivable and purchase order finance services of Wells Fargo & Company and its subsidiaries, and provides traditional asset-based lending, specialized senior secured financing, accounts receivable financing, purchase order financing and channel finance to companies across the United States and Canada. Dedicated teams within Wells Fargo Capital Finance provide financing solutions for companies in specific industries such as retail, software publishing and high-technology, commercial finance, staffing, government contracting and others. For more information, visit wellsfargocapitalfinance.com

SOURCE City Sports