May 28, 2009 (FinancialWire) — Eddie Bauer Holdings, Inc. (NASDAQ: EBHI) (Current Market Cap: US$16.65 Mil.) said it has executed an amendment to its $225 million term loan agreement including an agreement to issue to its lenders $0.01 exercise price warrants exercisable for 19.9% of the company’s common stock on a fully-diluted basis, or around 7,842,456 shares.

The agreement is with various lenders, with Goldman Sachs Credit Partners (NYSE: GS), as syndication agent, and JP Morgan Chase Bank, N.A. (NYSE: JPM), as administrative agent.

The warrants are subject to adjustment for any conversion of Eddie Bauer’s 5.25% convertible senior notes due 2014, new capital infusions of less than $40 million and exercise of equity compensation grants.

The company has $75 million of the notes outstanding.

Seattle-based Eddie Bauer is a specialty retailer that sells outerwear, apparel and accessories for the outdoor lifestyle. Eddie Bauer products are available at 371 stores throughout the United States and Canada, through catalog sales and online. Eddie Bauer participates in a joint venture in Japan and has licensing agreements across a range of product categories.

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