Quiksilver secures $200 million loan
Quiksilver (NYSE: ZQK) has secured a $200 million asset-based credit facility, which will be used for working capital needs. GE Capital, Corporate Retail Finance acted as collateral agent and GE Capital Markets served as co-lead arranger.
“GE’s ability to commit a significant amount of capital helped to provide us with the liquidity we desired,” said Joe Scirocco, CFO for Quiksilver, in a statement. “Also, their in-depth retail finance knowledge enabled us to quickly complete this transaction, which was integral to our ability to simultaneously execute other financing transactions both in the U.S. and in Europe.”
Analyst adds Jarden to preferred stocks list
Goldman Sachs added Jarden Corp. (NYSE: JAH), parent of Coleman, Marmot and K2, to a list of preferred stocks, saying strong and healthy sales are imminent.
Analyst Michael Kelter added the stock to his buy list with a $42 price target on the stock, up $10 — meaning shares have room to climb 56.5 percent from the Sept. 22 close of $26.84.
Kelter wrote in a client note that sales should turn positive in coming quarters and advised investors to buy the shares heading in to third-quarter earnings. He noted that the fourth quarter is a “key inflection point” when sales growth will likely turn positive after softness in recent periods during the recession.
Kelter expects Jarden management will offer “bullish” commentary about the fourth quarter and 2010 during its Oct. 28 earnings call, which will likely send the shares higher.
Forzani reports slight rise in back-to-school sales
The Forzani Group (TSX: FGL) said consolidated same-store sales for the back-to-school period increased 0.1 percent compared to the same time last year.
Compared to last year, its corporate same-store sales were down 1.6 percent and its franchise same-store sales were up 3.8 percent for the seven weeks ended Sept. 20.
“These results suggest an improvement from the corporate results reported in our second quarter press release and were, for the most part, expected due to the later return to school in certain corporate markets,” said Bob Sartor, Forzani’s CEO, in a statement.
The Forzani Group is Canada’s largest national retailer of sporting goods with retail banners that include Sport Chek, Coast Mountain Sports, Sport Mart and The Fitness Source.
–Compiled by Wendy Geister
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