The Children’s Place, Inc. (Nasdaq: PLCE), an
omni-channel children’s specialty portfolio of brands with an
industry-leading digital-first model, today announced that it has
entered into a new financing agreement with its majority
shareholder, Mithaq Capital SPC (“Mithaq”), for an unsecured and
subordinated $90 million term loan, to be funded no later than
April 19, 2024 (the “New Mithaq Term Loan”).
The New Mithaq Term Loan will further strengthen
the Company’s liquidity position on better terms in the aggregate
than the previously announced term loan contemplated by the
non-binding term sheet that the Company entered into with 1903P
Loan Agent, LLC (the “Proposed Term Loan”). As a result of this new
financing, the Company will not pursue the Proposed Term Loan any
further.
The Company intends to use the net proceeds of
the New Mithaq Term Loan to repay the Company’s existing $50
million term loan under the Company’s Amended and Restated Credit
Agreement dated May 9, 2019 (the “Credit Facility”), to reduce a
portion of the Company’s accounts payable balances with vendors,
and for other general corporate purposes. As previously disclosed,
Mithaq’s acquisition of the Company’s common stock triggered a
change in control that caused an event of default under the Credit
Facility. Upon the funding of the New Mithaq Term Loan, an
amendment to the Credit Facility will become effective, which among
other things, will permit entering into the New Mithaq Term Loan
and waive the event of default resulting from the change in
control.
The New Mithaq Term Loan matures on April 16,
2027 and will accrue interest at the Secured Overnight Financing
Rate (“SOFR”) plus 4.00% per annum, with accruing interest payments
to be deferred until April 30, 2025. Unlike the Proposed Term Loan,
the New Mithaq Term Loan does not contain closing, prepayment or
exit fees, or other fees typical for transactions of this nature,
does not impose additional reserves on borrowings under the Credit
Facility, does not contain certain restrictive covenants, and
provides for a significantly lower interest rate than the Proposed
Term Loan.
Sheamus Toal, Chief Operating Officer and Chief
Financial Officer of The Children’s Place, said, “We are pleased to
have the continued support of our majority shareholder, and to have
secured additional funding to address our liquidity needs on
significantly more favorable terms in the aggregate than those
contemplated by the Proposed Term Loan. We are now better
positioned to deliver on our industry-leading digital strategy,
while also remaining strongly focused on improving operational
efficiency and profitability.”
Turki S. AlRajhi, Chairman of The Children’s
Place and Chairman and CEO of Mithaq, stated, “We are pleased to
demonstrate our continued commitment in decisive, self-explanatory
actions. The financing agreement is not only in the best interest
of all fellow shareholders and better than the alternative options,
but also puts The Children’s Place in a stronger financial
position.”
Since February 29, 2024, the Company has
received $168.6 million in funding from Mithaq, composed of the $90
million New Mithaq Term Loan and the previously announced $78.6
million in interest-free, unsecured and subordinated term loan
funding (the “Initial Mithaq Term Loans”).
Additional details regarding the New Mithaq Term
Loan can be found in the Form 8-K to be filed by the Company with
the Securities and Exchange Commission following the funding of the
New Mithaq Term Loan.
About The Children’s PlaceThe
Children’s Place is an omni-channel children’s specialty portfolio
of brands with an industry-leading digital-first model. Its global
retail and wholesale network includes four digital storefronts,
more than 500 stores in North America, wholesale marketplaces and
distribution in 16 countries through six international franchise
partners. The Children’s Place is proud to be a women-led Company,
including industry-leading gender diversity in senior management
and throughout all levels of its workforce, and of its commitment
to sustainable business practices that benefit its customers,
associates, investors, suppliers and the communities it serves. The
Children’s Place designs, contracts to manufacture, and sells
fashionable, high-quality apparel, accessories and footwear
predominantly at value prices, primarily under its proprietary
brands: “The Children’s Place”, “Gymboree”, “Sugar & Jade”, and
“PJ Place”. For more information,
visit: www.childrensplace.com and www.gymboree.com,
as well as the Company’s social media channels on Instagram,
Facebook, X, formerly known as Twitter, YouTube and Pinterest.
About Mithaq Mithaq Capital SPC
is an affiliate of Mithaq Holding Company, a decentralized family
office headquartered in Saudi Arabia with investments in public
equities, private equities, real estate, and income-producing
assets in local and international markets. Mithaq follows a
disciplined value investing approach with margin-of-safety as a
principle. Mithaq is a strategic long-term shareholder with a
history of owning high-quality businesses, supporting first-class
management teams, and championing long-standing partnerships based
primarily on trust. Mithaq is a segregated portfolio company
existing under the laws of the Cayman Islands. For further
information, visit www.mithaqholding.com.
Forward-Looking StatementsThis
press release contains or may contain forward-looking statements
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, including but not limited
to statements relating to the New Mithaq Term Loan and the Initial
Mithaq Term Loans. Forward-looking statements typically are
identified by use of terms such as “may,” “will,” “should,” “plan,”
“project,” “expect,” “anticipate,” “estimate” and similar words,
although some forward-looking statements are expressed differently.
These forward-looking statements are based upon the Company’s
current expectations and assumptions and are subject to various
risks and uncertainties that could cause actual results and
performance to differ materially. Some of these risks and
uncertainties are described in the Company’s filings with the
Securities and Exchange Commission, including in the “Risk Factors”
section of its annual report on Form 10-K for the fiscal year ended
January 28, 2023. Included among the risks and uncertainties that
could cause actual results and performance to differ materially are
the risk that the Company will be unsuccessful in gauging fashion
trends and changing consumer preferences, the risks resulting from
the highly competitive nature of the Company’s business and its
dependence on consumer spending patterns, which may be affected by
changes in economic conditions (including inflation), the risks
related to the COVID-19 pandemic, including the impact of the
COVID-19 pandemic on our business or the economy in general, the
risk that the Company’s strategic initiatives to increase sales and
margin are delayed or do not result in anticipated improvements,
the risk of delays, interruptions, disruptions and higher costs in
the Company’s global supply chain, including resulting from
COVID-19 or other disease outbreaks, foreign sources of supply in
less developed countries, more politically unstable countries, or
countries where vendors fail to comply with industry standards or
ethical business practices, including the use of forced, indentured
or child labor, the risk that the cost of raw materials or energy
prices will increase beyond current expectations or that the
Company is unable to offset cost increases through value
engineering or price increases, various types of litigation,
including class action litigations brought under consumer
protection, employment, and privacy and information security laws
and regulations, the imposition of regulations affecting the
importation of foreign-produced merchandise, including duties and
tariffs, the uncertainty of weather patterns, and the risk that our
preliminary unaudited results for the fourth quarter of fiscal 2023
may differ (perhaps materially) from our actual results for such
period. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date they
were made. The Company undertakes no obligation to release publicly
any revisions to these forward-looking statements that may be made
to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
The Children’s Place
Contact:Investor Relations (201) 558-2400 ext. 14500
Mithaq
Contact:Mithaq-Capital@MithaqHolding.com
Childrens Place (NASDAQ:PLCE)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Childrens Place (NASDAQ:PLCE)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024