Neiman Marcus Holding Company recently announced it has emerged from voluntary Chapter 11 protection, completing its restructuring process and implementing the reorganisation plan that was confirmed by a US bankruptcy court on September 4. It has eliminated more than $4 billion of existing debt and more than $200 million of cash interest expense annually, with no near-term maturities.
The Neiman Marcus Group is a luxury, multi-branded, omni-channel fashion retailer conducting integrated store and online operations under the Neiman Marcus, Bergdorf Goodman, Neiman Marcus Last Call and Horchow brand names.
“Our new owners, which include PIMCO, Davidson Kempner Capital Management and Sixth Street, understand the value of our brands and the opportunity for growth,” stated Geoffroy van Raemdonck, chief executive officer of the group in a statement.
The new owners are funding a $750 million exit financing package that fully refinances the debtor-in-possession loan and provides significant additional liquidity for the business.
The company has also secured a $125 million first-in last-out (FILO) credit facility led by Pathlight, the proceeds of which refinance existing debt and will provide liquidity to support its ongoing operations and strategic initiatives.
Fibre2Fashion News Desk (DS)