SECAUCUS, NJ, October 06, 2020 (GLOBE NEWSWIRE) – The Children’s Place, Inc. (Nasdaq: PLCE), the largest specialty children’s clothing retailer in North America, today announced an $ 80 million secured term loan with Crystal Financial LLC. The net proceeds of 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, said: “We are delighted to have finalized the $ 80 million term 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 by a second lien on the assets securing the revolving credit facility. Interest is payable monthly, at the greater of three-month LIBOR and 1.00%, plus 7.75% or 8.00% depending on the average excess credit available under the revolving credit facility. The term loan is payable in quarterly installments commencing with the Company’s fiscal quarter ending on or about July 31, 2021 and matures no earlier than October 5, 2025 and the maturity of the revolving credit facility.
In addition, in connection with the financing of the term loan, the Company entered into an amendment to the Company’s revolving credit facility providing for certain changes that allow the term loan and align the terms of the revolving credit facility with those of the term loan.
Additional information on 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 place of children
The Children’s Place is the largest specialty children’s clothing retailer in North America. The Company designs, contracts to manufacture, retail and wholesale, and licenses to sell high-quality and fashionable merchandise primarily at value prices, primarily under the exclusive brands “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, from online stores to www.childrensplace.com and www.gymboree.com, and the Company’s eight international franchise partners had 276 international distribution points in 19 countries.
About Crystal Financial LLC
Crystal Financial LLC, a holding company of Solar Capital Ltd. is a leading provider of direct private credit focused on the creation, underwriting and management of asset-based, cash-flow-based debt financing for mid-market companies. Since its inception in 2006, its team of experienced and responsive professionals has provided over $ 4 billion in secured debt commitments across a wide range of industries. For more information, please visit www.crystalfinco.com.
This Press release, contains or may contain forward-looking statements made in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the Company’s strategic initiatives and adjusted net income per diluted share. Forward-looking statements are generally identified by the use of terms such as “may”, “will”, “should”, “plan”, “plan”, “expect”, “anticipate”, “estimate” and similar, although some forward-looking statements are expressed differently. These forward-looking statements are based on the Company’s current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties are described in documents filed by the Company with the Securities and Exchange Commission, including in the “Risk Factors” section of its annual report on Form 10-K for the year ended 1 February 2020 and supplemented by the “” “Risk factors” of its quarterly reports on form 10-Q for the fiscal quarter ended May 2, 2020 and the fiscal quarter ended August 1, 2020. Among the risks and uncertainties that could entail a substantial difference between actual results and performance is the risk that the Company will fail to assess fashion trends and changing consumer preferences, risks resulting from the highly competitive nature of the Company’s business. Society and its dependence on consumer habits, which can be affected by changes in economic conditions, risks associated with the pandemic COVID-19, including the impact of the COVID-19 pandemic on our business or the economy in general (including the decrease in customer traffic, the school’s adoption of a distance learning model, closures of businesses and other activities resulting in decreased demand for our products and negative impacts on the spending habits of our customers due to a decrease in income or real or perceived wealth, and impact of the CARES law and other legislation related to the COVID-19 pandemic and any changes to the CARES law or any other legislation), the risk that the Company’s strategic initiatives to increase sales and margin will be delayed or do not result in anticipated improvements, the risk of delays, interruptions and disruptions in the Company’s global supply chain, including resulting from COVID-19 or other epidemics, sources of foreign supply in countries m In developed countries or in more politically unstable countries, the risk that the cost of raw materials or energy prices will rise beyond current expectations or that the company is unable to compensate for cost increases through the engineering of the value or price increases, various types of litigation, ng class actions brought under laws and regulations on consumer protection, employment, confidentiality and information security, the imposition of regulations affecting the importation of goods produced abroad, including duties and tariffs, and uncertainty of weather conditions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. The Company does not undertake to publicly disclose any revisions to these forward-looking statements that may be made to reflect events or circumstances subsequent to the date hereof or to reflect the occurrence of unforeseen events.