Hudson’s Bay Company Announces Amendment to Increase Capacity of Asset-Based Revolving Credit Facility

TORONTO & NEW YORK–(BUSINESS WIRE)–(all values in U.S. Dollars) – Hudson’s Bay Company (“HBC” or the
“Company”) (TSX: HBC)
is pleased to announce the closing of an amendment to its asset-based
revolving credit facility (“Global ABL”) that increases its total
capacity by $350 million to a total of $2.25 billion. Of this $350
million increase, $100 million is allocated to financing the working
capital requirements and other general corporate purposes of the
Company’s operations in the Netherlands. All other terms remain
substantially the same.

Paul Beesley, Chief Financial Officer, HBC commented, “This amendment to
our Global ABL provides additional financial flexibility to HBC. Our
solid capital structure is supported by long term mortgages on our 5th
Avenue flagships, and we are pleased to strengthen our balance sheet
even further with this amendment. As we open our first Hudson’s Bay
stores in the Netherlands later this year, we will be able to rely on
this facility to help finance our inventory and other working capital
requirements associated with the entry into this market.”

The Global ABL allows HBC to use its inventory and accounts receivable
as collateral to finance working capital requirements, capital
expenditures and other general corporate purposes. The $2.25 billion
facility has a maturity date of February 5, 2021 with key terms that are
consistent with the initial Global ABL facility closed in February of
2016. Interest rates on this facility range between LIBOR+125 to
LIBOR+175. At the end of Fiscal 2016, January 28, 2017, there was a
total of $330 million outstanding borrowings on the Global ABL, as
compared to $939 million at the end of the third quarter, October 29,
2016.

About Hudson’s Bay Company

Hudson’s Bay Company is one of the fastest-growing department store
retailers in the world, based on its successful formula of growing
through acquisitions, driving the performance of high quality stores and
their all-channel offerings and unlocking the value of real estate
holdings. Founded in 1670, HBC is the oldest company in North America.
HBC’s portfolio today includes ten banners, in formats ranging from
luxury to premium department stores to off price fashion shopping
destinations, with more than 480 stores and 66,000 employees around the
world.

In North America, HBC’s leading banners include Hudson’s Bay, Lord &
Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Home
Outfitters. In Europe, its banners include GALERIA Kaufhof, the largest
department store group in Germany, Belgium’s only department store group
Galeria INNO, as well as Sportarena.

HBC has significant investments in real estate joint ventures. It has
partnered with Simon Property Group Inc. in the HBS Global Properties
Joint Venture, which owns properties in the United States and Germany.
In Canada, it has partnered with RioCan Real Estate Investment Trust in
the RioCan-HBC Joint Venture.

Forward-Looking Statements

Certain statements made in this news release are forward-looking within
the meaning of applicable securities laws, including, among others, with
respect to the amended Global ABL helping, among

other things, to finance HBC’s working capital requirements, capital
expenditures and other general corporate purposes as it opens its first
Hudson’s Bay stores in the Netherlands, and providing additional
financial flexibility and further strengthening HBC’s balance sheet.
Often but not always, forward-looking statements can be identified by
the use of forward-looking terminology such as “may”, “will”, “expect”,
“believe”, “estimate”, “plan”, “could”, “should”, “would”, “outlook”,
“forecast”, “anticipate”, “foresee”, “continue” or the negative of these
terms or variations of them or similar terminology.

Although HBC believes that the forward-looking statements in this news
release are based on information and assumptions that are current,
reasonable and complete, these statements are by their nature subject to
a number of factors that could cause actual results to differ materially
from management’s expectations and plans as set forth in such
forward-looking statements for a variety of reasons. Some of the factors
– many of which are beyond the Company’s control and the effects of
which can be difficult to predict – include, among others: ability to
execute retailing growth strategies, ability to achieve comparable sales
growth, changing consumer preferences, marketing and advertising program
success, damage to brands, dependence on vendors, ability to realize
synergies and growth from strategic acquisitions, ability to make
successful acquisitions and investments, successful inventory
management, and other risks inherent to the Company’s business and/or
factors beyond the Company’s control which could have a material adverse
effect on the Company.

HBC cautions that the foregoing list of important factors and
assumptions is not exhaustive and other factors could also adversely
affect its results. For more information on the risks, uncertainties and
assumptions that could cause HBC’s actual results to differ from current
expectations, please refer to the “Risk Factors” section of HBC’s annual
information form dated April 28, 2016, as well as HBC’s other public
filings, available at www.sedar.com
and at www.hbc.com.

The forward-looking statements contained in this news release describe
HBC’s expectations at the date of this news release and, accordingly,
are subject to change after such date. Except as may be required by
applicable Canadian securities laws, HBC does not undertake any
obligation to update or revise any forward-looking statements contained
in this news release, whether as a result of new information, future
events or otherwise. Readers are cautioned not to place undue reliance
on these forward-looking statements.

Contacts

Hudson’s Bay Company
INVESTOR RELATIONS:
Kathleen de
Guzman, 646-802-7070
kathleen.deguzman@hbc.com
or
Elliot
Grundmanis, 646-802 2469
elliot.grundmanis@hbc.com
or
MEDIA
CONTACTS:

Andrew Blecher, 646-802-4030
andrew.blecher@hbc.com