Clothing retailer Gap Inc yesterday (7 April) said it had entered into a new $500m revolving credit facility and a $400m five-year term loan, as well as a public bond offering.

The net proceeds of the offering will be used for general corporate purposes, including share repurchases, it said.

The new financing matures in 2016 and replaces the company's existing $500m credit facility.

"We believe this is an opportune time to optimise our capital structure by taking advantage of the favourable market conditions," said Sabrina Simmons, chief financial officer at Gap Inc.