McNaughton Apparel Group Inc. (Nasdaq:MAGI) has today announced that it has closed the deal on a three-year $210m senior secured revolving credit facility with Bank of America.

The new credit facility, which may be increased to $225m during the term, replaces the company's existing $175m senior secured revolving credit facility.

The facility will provide for letters of credit and revolving credit loans on a borrowing base formula, with floating interest rates based on margins over LIBOR or prime at the company's option.

Peter Boneparth, chief executive officer of McNaughton Apparel Group, said: "We are extremely pleased to have closed this expanded credit facility, which provides us with the additional working capital necessary to continue executing our internal growth strategy."

The company were also able to announce that it had issued $59m in three-year subordinated promissory notes to the sellers of Jeri-Jo and Jamie Scott in final payment of the earn-out obligation. The notes bear interest at the non-overadvance floating rate set forth in the new senior credit facility.