Saks parent Exemplar Luxury Group exits bankruptcy with debt under $1 billion

Corporate Action

โดย Retail Dive·Read original

Summary · why it matters

Exemplar Luxury Group, the parent of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, has reduced its debt by roughly 75 percent to under one billion dollars after less than six months in Chapter 11. The company entered bankruptcy in January with three point four billion dollars in debt and exited Friday with eight hundred forty million dollars, comprising three hundred forty million on its asset-based loan facility and five hundred million in exit term loans from the ad hoc secured noteholder group, now the majority owners. The court-approved five hundred million dollars in new capital positions the company for a turnaround, though some post-bankruptcy financial terms allow interest to be paid by adding to the debt rather than in cash, which could weaken the balance sheet over time. Additionally, a one point two five billion dollar commercial mortgage-backed security loan on the New York Saks flagship, while non-recourse to Exemplar, must still be serviced through payments the company makes on the store, adding complexity to its financial picture.

Impact on stocks 0

Off-coverage companies 4

Exemplar Luxury GroupPrivate▲ Positive

Capitalrelevance

Exemplar Luxury Group exits Chapter 11 with debt reduced by 75% to under $1 billion and receives $500 million in new capital.

Bergdorf GoodmanPrivate▲ Positive

Capitalrelevance

Exiting bankruptcy with reduced debt and new capital improves financial stability for Bergdorf Goodman as part of the group.

Neiman MarcusPrivate▲ Positive

Capitalrelevance

Neiman Marcus benefits from the group's debt reduction and new capital as part of the parent company.

Saks Fifth AvenuePrivate▲ Positive

Capitalrelevance

Saks Fifth Avenue benefits from the group's debt reduction and new capital, though a $1.25B CMBS loan on its flagship adds complexity.