BankAmerica Business Credit has been tapped for a revolving line of credit of $225 million to Venture Stores Inc.
The secured three-year loan will be totally underwritten by the BankAmerica Corp. unit, and includes an option for a fourth year.
"This loan will provide Venture with a minimum improvement of $50 million of cash availability, greater flexibility and much more favorable financial covenants," said Robert N. Wildrick, chairman and chief executive of the discount department store chain.
Mr. Wildrick said the funding will allow the O'Fallon-based company, which operates 107 stores in nine states, to expand into new categories of business and take other steps to improve sales.
Venture lost $3.8 million in 1995, but has implemented a program to cut costs and boost margins and posted a $1.1 million profit on $351 million in sales in the first quarter.