Men's apparel specialty retailer Men's Wearhouse (NYSE:TLRD) closed on a $400 million credit agreement with possible future increases to $450 million under an expansion feature.

The credit agreement provides for a $100 million term loan, available in a single advance during the period of 120 days after the closing date, along with a $300 million senior revolving credit facility. If the $100 million loan is drawn, it will be repaid over five years, with 10% payable annually in quarterly installments and the remainder due at maturity on April 12, 2018. Men's Wearhouse intends to use the credit facility for general corporate purposes.

President and CEO of Men's Wearhouse Doug Ewert said: "We are pleased to complete our amended credit agreement which provides us much more capacity and flexibility. The new facility increases our revolver from $200 million to $300 million, adds the $100 million term loan option, and increases the expansion feature from $100 million to $150 million, while extending the maturity date two years."

Men's Wearhouse is one of North America's largest specialty retailers of men's apparel, with 1,143 stores operating under the Men's Wearhouse, Moores, and K&G brand names.

The credit agreement was led by JPMorgan Chase as the administrative agent, with Bank of America and U.S. Bank as co-syndication agents. 

Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool owns shares of Bank of America and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.