Categorical, Inc. Publicizes Refinancing Transactions

Columbus, Ohio–(BUSINESS WIRE)– Style clothes store categorical, inc. (NYSE: EXPR) nowadays introduced two transactions in enhance of a complete plan to refinance its capital construction and extend its get admission to to liquidity whilst lowering rate of interest publicity and offering flexibility to pay off its debt steadiness at pending closing date.

Those two transactions come with:

Build up the utmost quantity of revolver in $40 million a $290 million enhancing your present $250 million Senior Secured Asset-Based totally Revolving Facility (the ‘Changed Revolving Facility’)

Refinance and scale back Categorical’s fastened debt publicity through enhancing its present $140 million Important Secured Asset-Based totally Time period Mortgage Facility (the ‘Changed Time period Mortgage Facility’), together with refinancing your $90 million Time period Mortgage First In Closing Out (‘FILO’) and rescind your $50 million Deferred Draft Time period Mortgage (‘DDTL’), of which $43 million it was once up to now paid

“We’re happy to finish those refinancing transactions, which bolster our get admission to to liquidity, toughen our steadiness sheet, scale back our rate of interest publicity and fortify our capital construction,” he mentioned. jason judd, CFO of Categorical. ‘We will be able to proceed to paintings to scale back debt publicity in 2023. Underneath the phrases of the Changed Time period Mortgage Facility, Categorical might use proceeds from the $52 million CARES Act account receivable to pay remarkable installment debt. With larger monetary flexibility, we imagine we’re neatly located to proceed to execute on our EXPRESSway Ahead technique and pursue enlargement alternatives.”

Changed Revolving Credit score Facility

categorical present $250 million Changed revolving credits facility, co-directed through Wells Fargo Financial institution, NA (‘Wells Fargo’) and Financial institution of The united states, NA. (‘Financial institution of The united states‘), was once changed and expanded through $40 million a $290 million with Wells Fargo performing as managing agent and collateral agent. The rate of interest has been lowered through changing the reference rate of interest of the London Interbank Introduced Charge (‘LIBOR’), which had an acceptable margin of two.00% to two.25%, with the rate of interest of Assured In a single day Passion Charge (‘SOFR’) reference, which has an acceptable margin of one.60% to at least one.85%. The Changed Revolving Line of Credit score will mature on November 26, 2027. At present acceptable charges, the substitute of LIBOR with SOFR below the Changed Revolving Credit score Facility reduces rate of interest publicity through roughly 40 foundation issues.

Changed Time period Mortgage Facility

categorical present $140 million The Time period Mortgage Facility was once changed through refinancing its $90 million FILO Time period Mortgage and rescinding its $50 million DDTL. Wells Fargo will act as managing agent and collateral agent for the Changed Time period Mortgage Facility. repair capital acted as number one lender, with fargo wells Y Financial institution of The united states additionally collaborating as lenders. The rate of interest was once lowered through changing LIBOR, which had an acceptable margin of seven.00%, to eight.25%, because the benchmark rate of interest with SOFR, which has an acceptable margin of seven.50%. The Changed Time period Mortgage Facility will mature on November 26, 2027. At present acceptable charges, the substitute of LIBOR with SOFR below the Changed Time period Mortgage Facility reduces rate of interest publicity through roughly 85 foundation issues.

Kirkland & Ellis LLC served as felony suggest to the Corporate. Wells Fargo is the managing agent and collateral agent for each amenities.

On categorical, inc.

Categorical is a contemporary, multi-channel clothes and niknaks logo constructed on versatility, guided through its goal: we construct agree with. We encourage self-expression. – and pushed through a method group. Introduced in 1980 with the concept taste, high quality and worth will have to all be present in one position, Categorical has been part of one of the greatest and maximum culture-defining style tendencies. Categorical Edit’s design philosophy guarantees that the logo is all the time “in-time” so other folks can get dressed each day and for any instance understanding that Categorical can lend a hand them glance how they need to appear and feel how they need to really feel.

The Corporate operates greater than 550 retail and outlet retail outlets in the US Y Puerto Ricothe specific.com on-line retailer and the Categorical cellular app. categorical, inc. It’s constructed from the Categorical and UpWest manufacturers, and is indexed at the New York Inventory Trade below the ticker EXPR. For more info, discuss with www.categorical.com or www.upwest.com.

On repair capital

repair capital is a credit-focused funding supervisor offering adapted financing answers for client, retail, wholesale and e-commerce companies. repair capital companions with control groups, sponsors, and different buyers to supply ingenious answers for refinances, enlargement capital, leveraged buyouts, add-on acquisitions, recapitalizations, and opportunistic investments. For more info, discuss with www.restore-cap.com

forward-looking statements

Sure statements are “forward-looking statements” made pursuant to the secure harbor provisions of the Personal Securities Litigation Reform Act of 1995. Ahead-looking statements come with any observation that does indirectly relate to any present or ancient truth and come with, however don’t seem to be restricted to (1) increasing the Corporate’s get admission to to liquidity; (2) aid within the Corporate’s rate of interest publicity and hobby expense; (3) the Corporate’s talent to pay its remarkable time period debt steadiness; (4) the Corporate’s talent to make use of proceeds from the CARES Act receivable; (5) execution of the EXPRESSway Ahead technique and seek for enlargement alternatives; (6) steering and expectancies, together with statements about anticipated working margins, related gross sales, efficient tax charges, hobby source of revenue, internet source of revenue, diluted income according to percentage; money tax refunds, liquidity, EBITDA, loose money waft, e-commerce call for, and capital expenditures; (7) statements about projected retailer openings, retailer closings, retailer conversions, and gross sq. pictures; and (8) statements in regards to the Corporate’s technique, plans and tasks, together with, with out limitation, the predicted result of such technique, plans and tasks. You’ll be able to determine those forward-looking statements by way of phrases sooner or later demanding and statements accompanied through phrases similar to ‘outlook’, ‘indicator’, ‘believes’, ‘expects’, ‘doable’, ‘continues’, ‘might,’ ‘will’ , ‘will have to’, ‘seeks’, ‘roughly’, ‘predicts’, ‘intends’, ‘plans’, ‘scheduled’, ‘estimated’, ‘anticipates’, ‘probability’, ‘leads’ or the damaging model of those phrases or different related phrases. Ahead-looking statements are in accordance with our present expectancies and assumptions, which will not be correct. Those statements don’t seem to be promises and are matter to dangers, uncertainties and adjustments in instances tough to are expecting and critical contingencies, a lot of which might be past the keep an eye on of the Corporate. Many elements may reason precise effects to fluctuate materially and adversely from those forward-looking statements. Amongst those elements are (1) adjustments in client spending and common financial prerequisites; (2) the COVID-19 pandemic and its proceeding affect on our trade operations, retailer visitors, worker availability, monetary situation, liquidity, and money waft; (3) geopolitical dangers, together with the affects of the continuing struggle between Russia Y Ukraine and emerging tensions between Porcelain Y taiwan; (4) our talent to perform our trade successfully, arrange capital expenditures and prices, and acquire financing when vital; (5) our talent to spot and reply to new and converting style tendencies, buyer personal tastes and different similar elements; (6) fluctuations in our gross sales, result of operations, and money ranges through season and because of quite a few different elements, together with our product choices when it comes to buyer call for, the combination of products we promote, promotions, and ranges of stock; (7) buyer visitors in department stores, department stores, and in our retail outlets; (8) pageant from different outlets; (9) our reliance on a powerful logo symbol; (10) our talent to conform to converting client habits and expand and care for a related and relied on omnichannel revel in for our consumers; (11) the failure or breach of knowledge techniques on which we depend; (12) our talent to give protection to buyer information from fraud and robbery; (13) our reliance on 3rd events to fabricate all of our products; (14) adjustments in the price of uncooked fabrics, hard work and freight; (15) provide chain or different trade disruption, together with on account of the coronavirus; (16) our reporting to key govt control; (17) our talent to execute our enlargement technique, EXPRESSway Ahead, together with attractive our consumers and obtaining new ones, executing with precision to boost up gross sales and profitability, developing nice merchandise, and revitalizing our logo ; (18) our subject material hire duties; (19) our reliance on 3rd events to supply us with sure services and products key to our trade; (20) fees for impairment of long-lived property; (21) claims in opposition to us that lead to litigation or adjustments in rules and rules acceptable to our trade; (22) our failure to give protection to our logos or different highbrow assets rights which might save you the usage of our logos or different highbrow assets during the arena; (23) the limitations put on us below the phrases of our Changed Revolving Credit score Facility and our Changed Time period Mortgage Facility, together with restrictions at the talent to impact percentage repurchases; (24) adjustments in tax necessities, result of tax audits and different elements that can reason fluctuations in our efficient tax charge; (25) adjustments in tariff charges; and (26) herbal screw ups, excessive climate, public well being problems, together with pandemics, fires, acts of terrorism or struggle, and different occasions that reason trade interruption. Those elements will have to now not be construed as exhaustive and will have to be learn at the side of the extra knowledge on those and different elements in Categorical, Inc. shows with the Nationwide Inventory Marketplace Fee. We don’t adopt any legal responsibility to publicly replace or revise any forward-looking observation on account of new knowledge, long term occasions or in a different way, except for as required through legislation.

greg johnson

[email protected]

614-474-4890

Font: categorical, inc.

Leave a Comment