J.Crew achieves term loan amendment approval for debt restructuring

By

Obi Anyanwu

Published
Jun 22, 2017

J. Crew announced on Wednesday that the lenders holding approximately 88% of the outstanding principal amount of loans under the company’s term loan agreement have consented to the term loan amendment.
 

The term loan agreement, which was originally announced on June 16, is a deal to reduce J. Crew’s $2.1 billion debt load and extend its deadlines to repay some of the debt by two years.
 
J. Crew first asked creditors to agree to out-of-court restructuring to allow the retailer more time to turn around its business. The retailer won support of 50% of its term loan holders for the deal on June 16.

The amendment was announced in connection with the offer to exchange any or all of the outstanding $566.5 million aggregate principal amount of 7.75%/8.50% Senior PIK Toggle Notes due 2019 issued by Chinos Intermediate Holdings, A, Inc., an indirect parent company of the Company.