(Bloomberg) -- Neiman Marcus Group Inc. completed a $100 million first-in-last-out facility that it will use to pay down the company’s debt obligations.

The luxury retailer plans to use the proceeds from the facility, also known as a FILO, to reduce its revolving credit facility and to create additional liquidity, according to people familiar with the terms. They asked not to be identified discussing a private matter. The FILO will create another $100 million in liquidity the company can access in the future, they said.

Neiman Marcus confirmed the new facility.

“This transaction was contemplated in our debt refinancing at the time the amend-and-extend was announced in March, and reflected in the definitive documentation,” Neiman Marcus said in a statement sent to Bloomberg. “Credit markets are still robust, so we saw this as an opportune time to establish this facility,” access additional capital under the revolver and enhance liquidity, the company said.

Neiman Marcus has faced increased pressure as consumers go online instead of going to department stores. The retailer said same-store sales fell 1.5% in its fiscal third quarter from a year earlier, citing heavy promotional pricing and a slowdown for some of its top 50 brands.

The company bought itself more time for a turnaround after it completed a debt exchange that extended the due dates on its debt load of about $4.5 billion.

To contact the reporter on this story: Katherine Doherty in New York at kdoherty23@bloomberg.net

To contact the editors responsible for this story: Rick Green at rgreen18@bloomberg.net, Nicole Bullock

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