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The Children's Place Enters Into $80 Million Term Loan Agreement
By GlobeNewswire
Net Proceeds to Pay Down the Company’s Revolving Credit Facility
The Children’s Place, Inc. (Nasdaq: PLCE), the largest pure-play children’s specialty apparel retailer in North America, today announced the completion of an $80 million secured term loan financing with Crystal Financial LLC. The net proceeds from the term loan will be used to repay borrowings under the Company’s secured revolving credit facility with certain banks.
Michael Scarpa, Chief Financial Officer, commented, “We are pleased to have completed the $80 million term loan financing with Crystal Financial. The term loan will provide the Company with additional capital, further strengthening our financial position and providing financial flexibility.”
The term loan is secured by a first lien on the Company’s intellectual property and certain other assets, and a second lien on the assets securing the revolving credit facility. Interest is payable monthly, at the greater of the three month LIBOR and 1.00%, plus 7.75% or 8.00% depending on the average excess availability of credit under the revolving credit facility. The term loan is payable in quarterly installments beginning with the Company’s fiscal quarter ending on or around July 31, 2021 and matures on the earlier of October 5, 2025 and the maturity of the revolving credit facility.
Also, in connection with the term loan financing, the Company entered into an amendment to the Company’s revolving credit facility providing for certain changes that permit the term loan and align the terms of the revolving credit facility to those of the term loan.
Additional information about the term loan is contained in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on October 6, 2020.
About The Children’s Place
The Children’s Place is the largest pure-play children’s specialty apparel retailer in North America. The Company designs, contracts to manufacture, sells at retail and wholesale, and licenses to sell fashionable, high-quality merchandise predominantly at value prices, primarily under the proprietary “The Children’s Place”, “Place”, “Baby Place,” and “Gymboree” brand names. As of August 1, 2020, the Company had 824 stores in the United States, Canada and Puerto Rico, online stores at www.childrensplace.com and www.gymboree.com, and the Company’s eight international franchise partners had 276 international points of distribution in 19 countries.
About Crystal Financial LLC
Crystal Financial LLC, a portfolio company of Solar Capital Ltd. is a leading provider of direct private credit focused on originating, underwriting and managing both asset based and cash flow debt financings to middle-market companies. Since inception in 2006, its team of experienced, responsive professionals have provided more than $4 billion in secured debt commitments across a wide range of industries. For more information please visit www.crystalfinco.com.
