Columbus, Ohio — Fashion apparel retailer Express, Inc. has entered into a definitive loan agreement with Sycamore Partners as lead lender, along with Wells Fargo and Bank of America Merrill Lynch, that strengthens its liquidity position by an additional $140 million.
The new financing includes a $90 million FILO Term Loan with a maturity date of May 24, 2024, and a $50 million Delayed Draw Term Loan, to be repaid upon receipt of a CARES Act tax refund expected to be received in the second quarter of 2021. This financing is in addition to the company’s existing $250 million asset-based loan facility, of which it had previously drawn $165 million.
“We continue to effectively manage our financial liquidity. I expect this additional capital will support the company through the duration of the pandemic and allow us to continue the important and transformational work of the EXPRESSway Forward strategy,” says Tim Baxter, chief executive officer.
Kirkland & Ellis LLP served as legal advisor and Lazard Fréres & Co. LLC served as financial advisor to the company in connection with the financing transaction. Latham & Watkins LLP served as legal advisor to Sycamore Partners.
Launched in 1980, Express operates more than 500 retail and factory outlet stores in the United States and Puerto Rico, as well as an online store. For more information, visit www.express.com.
SOURCE: Express