Last week I posted on the new allowance and strategy in doubling the amount of guarantees at Sotheby's (click HERE to read the post). As the guarantee increase was the main topic of the post, it did also mention an increase in credit facilities by GE Capital Markets of $250 million to finance growth, The total debt limit is now $850 million.
With the increased level in guarantees Sotheby's can now be more aggressive in securing top quality consignments and with the new line of credit fund growth in additional markets and partnerships such as the recent eBay platform.
The Wall Street Journal reports on the increase in the credit line
Source: The Wall Street JournalGE Capital, Corporate Finance today announced it is providing auction house Sotheby's (NYSE: BID) with $850 million in senior credit facilities. The new facilities include a $250 million credit line increase and will be used for general working capital and to support the company's business strategy. GE Capital Markets served as joint lead arranger and joint book runner on the facilities.
Founded in 1744, Sotheby's is one of the world's largest auctioneers of authentic fine art, antiques, jewelry and collectibles. Headquartered in New York City, it serves discerning clients from around the world. Sotheby's has been a GE Capital customer since 2009.
"We have had a very successful relationship with GE Capital and knew they would be able to help us with our growth plans," said Michael Gillis, senior vice president and treasurer of Sotheby's. "We appreciate their ability to meet our changing needs with flexible financing through a thorough understanding of our business model."
"As Sotheby's looks to execute on their business plan, we've provided a solution that would have an immediate and longer-term benefit," said Bob McCarrick, chief commercial officer--lending at GE Capital, Corporate Finance. "We customize our financial solutions to meet the unique needs of our mid-size customers."
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