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May 21, 2017
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Vince receives Rights Offering Commitment Letter, Notice from NYSE

Published
May 21, 2017

Vince on Friday announced that it received a Rights Offering Commitment Letter from Sun Capital Partners V, L.P. that provides Vince with $30 million of cash proceeds in the event that Vince conducts a Rights Offering of its common stock to stockholders.
 
The announcement comes weeks after Vince said, “there is substantial doubt about the company’s ability to continue as a going concern… specifically relating to its ability to comply with the consolidated net total leverage ratio under its term loan facility.”


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The company reported in April decreases in net sales and comparable sales and a net loss of $162.7 million all in fiscal year 2016. Following the sluggish results, Vince suspended its net sales and earnings guidance.
 
Brendan Hoffman, Chief Executive Officer, commented, “We are pleased to have received this Rights Offering Commitment Letter from Sun Fund V, and appreciate their continued support. The proceeds from a potential offering would enhance our capital structure and provide additional cash for operations, enabling us to continue executing our strategic plan.”

Sun Fund V’s obligations are subject to certain terms and conditions, such as Vince entering into an amendment to its existing senior secured term loan facility, and no default or event of default having occurred under Vince’s senior secured term loan facility or revolving credit facility.
 
In addition, Sun Fund V’s obligations terminate if Vince ‘s Rights Offering has not begun by June 30, 2017 at 11:59pm or August 7, 2017 at 11:59pm after the date is extended 45 days, or if Vince receives proceeds equal to or exceeding $30 million.
 
Vince also announced on Friday that it has received a written notice from the New York Stock Exchange for not satisfying continued listing standards. The company must bring its share price and consecutive 30 trading-day average share price above $1.00 by November 17, 2017.
 
Vince must also submit a letter to NYSE, on or prior to June 1, 2017, confirming the receipt of the Notice and its intent to cure the deficiencies. The company expects to notify NYSE that it intends to cure the deficiencies set forth in the Notice.

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