Borders (NYSE:BGP) Offered Lifeline from GE Capital (NYSE:GE), Shares Soar

Shares of Borders (NYSE:BGP) were up 34 percent in after hours trading on news GE Capital (NYSE:GE) will provide a $550 million credit facility for the bookseller, based on several conditions.

Borders said the $550 million credit facility will mature in 2014, and trump current credit and term loan facilities.

Borders has fought against closing its approximate 500 branded stores, saying they were needed to build out an e-book strategy and build its brand back up.

GE Capital's commitment requires the syndication of $175 million of the senior credit facility with other lenders, $125 million of junior debt financing, and a variety financing arrangements with vendors, landlords and other parties.

As of 8:00 PM EST, Borders was trading at $1.08, gaining $0.27, or 34 percent.