Children's Place Secures $90 Mln In Unsecured Term Loan From Majority Shareholder Mithaq Capital

(RTTNews) - Wednesday Children's Place, Inc. (PLCE) announced a new financing agreement with its majority shareholder Mithaq Capital SPC for an unsecured and subordinated $90 million term loan, which will be funded no later than April 19, 2024.

The New Mithaq Term Loan will mature on April 16, 2027, and will accrue interest at the Secured Overnight Financing Rate plus 4.00% per annum. Accruing interest payments will be deferred until April 30, 2025.

This New Mithaq Term Loan is expected to improve the company's liquidity position better than the previously announced Proposed Term Loan that the Company had entered into with 1903P Loan Agent, LLC. As a result of this new financing, the Company will not pursue the Proposed Term Loan any further.

The funds from the New Term Loan will be used to repay the Company's existing $50 million term loan, reduce a portion of its payable balances with vendors, and for other general corporate purposes.

Since February 29, 2024, Mithaq has provided the company with a total of $168.6 million in funding, which includes the $90 million New Mithaq Term Loan and a previously announced $78.6 million in interest-free, unsecured and subordinated term loan funding.