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GOTTSCHALKS FINALIZES $115 MILLION FINANCING

 FRESNO, Calif., Aug. 27 /PRNewswire/ -- Gottschalks Inc. (NYSE: GOT) announced that it has finalized financing agreements with Wells Fargo Bank, N.A., and Teachers Insurance and Annuity Association which will provide the company with a revolving credit facility through June 30, 1994 of up to $85 million, and term loans due in 1996 of $30 million.
 Indebtedness under the agreements is secured by a pledge of the company's assets.
 "We are pleased to have come to final agreements with Wells Fargo and Teachers. Their confidence is gratifying and we are moving forward with our vendors to finalize our holiday purchases," said Joe Levy, chairman and chief executive officer of Gottschalks. "We appreciate both the cooperation and support of so many of our vendors during the interim period prior to the finalization of those agreements."
 Under the terms of the new agreements, Wells Fargo will increase the company's existing credit facility from $79 million to $104 million, and the company will restructure the terms of its $11 million senior notes held by Teachers. In connection with the restructuring, Teachers will waive the company's past financial covenant defaults, and the company has agreed to revise certain terms of the senior notes.
 As Gottschalks continues to look for a turnaround in the state's overall economy and a return in consumer confidence, the company is confident that this financing will provide the funds necessary to meet its needs and is dedicating its efforts to improving the company's operating performance.
 Gottschalks is a regional department store chain, currently operating 26 department stores and 23 specialty apparel stores in California; Tacoma, Wash.; and Klamath Falls, Ore. Gottschalks offers moderate to upper moderately priced brand-name fashion merchandise.
 -0- 8/27/93
 /CONTACT: Alan A. Weinstein, senior vice president and chief financial officer of Gottschalks, 209-434-8000/
 (GOT WFC)


CO: Gottschalks Inc.; Wells Fargo Bank, N.A.; Teachers Insurance and
 Annuity Association ST: California IN: REA SU: FNC


BR -- NYON1 -- 6457 08/27/93 05:12 EDT
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Publication:PR Newswire
Date:Aug 27, 1993
Words:328
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