The Children’s Place Announces the Expansion of Its Revolving Credit Facility From $350 Million to $445 Million
June 05 2023 - 4:30PM
The Children’s Place, Inc. (Nasdaq:
PLCE), the largest pure-play children’s specialty
apparel retailer in North America, today announced the expansion of
its revolving credit facility from $350 million to $445 million.
The fifth amendment to the Company’s credit agreement also replaces
LIBOR as the interest rate benchmark with the SOFR interest rate
benchmark, and updates the interest rates to reflect current market
terms.
Sheamus Toal, Chief Financial Officer, said, “We are extremely
pleased to welcome PNC Bank as a new joint lead arranger, who is
committing an additional $95 million toward our revolving credit
facility and we are grateful for the support provided by our
current banking group. This additional credit availability will
significantly strengthen our financial position while also
supporting our seasonal working capital needs and investments in
the Company’s future growth.”
Under the amended credit agreement, revolving credit borrowings
will bear interest at SOFR plus 2.00% or 2.25% per annum, based on
the amount of the Company’s average daily excess availability.
These rates are subject to downward adjustment in the event that
the Company achieves a certain level of EBITDA and based on the
amount of the Company’s average daily excess availability. As a
SOFR loan, the term loan under the amended credit agreement will
bear interest at SOFR plus 2.75% per annum.
Additional information about the fifth amendment to the
Company’s credit agreement is contained in the Company’s Current
Report on Form 8-K filed with the Securities and Exchange
Commission on June 5, 2023.
About The Children’s PlaceThe
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”, “Gymboree”, “Sugar & Jade” and “PJ
Place” brand names. The Company has online stores
at www.childrensplace.com, www.gymboree.com,
www.sugarandjade.com and www.pjplace.com and, as of April 29, 2023,
the Company had 599 stores in the United States, Canada, and Puerto
Rico and the Company’s five international franchise partners had
212 international points of distribution in 15 countries.
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 Company’s strategic initiatives and
results of operations, including adjusted net income (loss) per
diluted share. 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, and the
uncertainty of weather patterns. 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.
Contact: Investor Relations (201)
558-2400 ext. 14500
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