Latest news with #FILO
Fashion United
30-05-2025
- Business
- Fashion United
Saks Global secures 350 million dollars in financing commitments
Saks Global, the newly formed retail group comprising Saks and Neiman Marcus, has announced that it has secured 350 million dollars of financing commitments from SLR Credit Solutions. This reflects progress against its previously announced measures to strengthen its balance sheet, the company said in a release. Anticipated the close on or before June 30, the commitments, subject to customary conditions, consist of a 300 million dollar first-in, last-out (FILO) facility for the company and a 50 million dollar secured term loan facility for certain subsidiaries, 'providing additional liquidity to support the execution of the company's business plan'. The FILO is to be incurred as an incremental facility associated with Saks Global's existing 1.8 billion dollar asset-based lending facility. The financings will provide the company with around 700 million dollars in available liquidity on a pro forma basis, Saks Global Operating Group CEO, Marc Metrick, said. In his statement, Metrick noted that the company has 'always planned' to implement measures to bolster liquidity as it continues to execute its transformation strategy. He continued: 'Along with synergy realisation and business performance exceeding our plans, we are well positioned to continue delivering for all of our stakeholders, including our brand partners.' Saks Global is a newly formed entity that was made upon Saks' acquisition department store giant Neiman Marcus Group, which it snapped up in December 2024 for 2.7 billion dollars. Its portfolio consists of Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Saks Off 5th, creating what the company's executive chairman, Richard Baker, said was 'an unparalleled multi-brand luxury portfolio with tremendous growth potential'.
Yahoo
29-05-2025
- Business
- Yahoo
Saks Global Secures $350 Million in New Financing Commitments
Company executes on plans for FILO facility and term loan NEW YORK, May 29, 2025--(BUSINESS WIRE)--Saks Global Enterprises LLC (the "Company") today shared progress against its previously announced measures to strengthen its balance sheet and support its long-term growth. The Company has secured $350 million of financing commitments from SLR Credit Solutions ("SLR") consisting of a $300 million first-in, last-out (FILO) facility for the company and a $50 million secured term loan facility for certain subsidiaries of the Company, providing additional liquidity to support the execution of the Company's business plan. The FILO facility will be incurred as an incremental facility in connection with the Company's existing $1.8 billion asset-based lending (ABL) facility. The funding of the commitments under the respective facilities is subject to customary conditions. The transaction is expected to close on or before June 30, 2025. Marc Metrick, CEO, Saks Global Operating Group said, "As we have always planned, Saks Global is implementing measures to further bolster liquidity and fortify our balance sheet as we continue executing on our transformation strategy and investing in our business. With the financings announced today, the Company will have approximately $700 million in available liquidity on a pro forma basis. Along with synergy realization and business performance exceeding our plans, we are well positioned to continue delivering for all of our stakeholders, including our brand partners." Michael Gross, CEO, SLR Capital Partners said: "We're pleased to support Saks Global and its leadership team as they execute on their strategic plan. This financing reflects our confidence in the company's platform and long-term growth trajectory." Business Momentum and Outlook The Company continues to see improvements in business performance, with inventory receipt flows improving and synergy realization from integration efforts significantly exceeding plan. Advisors BofA Securities, Inc. served as financial advisor to Saks Global in connection with the FILO facility. Willkie Farr & Gallagher LLP served as legal counsel to Saks Global. About Saks Global Saks Global is a combination of world-class luxury retailers, including Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Saks OFF 5TH, as well as a portfolio of prime U.S. real estate holdings and investments. Saks Global is deeply committed to helping luxury consumers discover the most sought-after established and emerging brands from around the world. Powered by data-driven technology and centered on the customer, Saks Global is on a mission to redefine the luxury shopping experience through highly personalized service, with greater opportunities for product discovery across all channels. About SLR Credit Solutions SLR Credit Solutions (f/k/a Crystal Financial), a portfolio company of SLR Investment Corp., is a leading provider of direct private credit focused on originating, underwriting, and managing asset-based financings. Forward-Looking Statements Certain statements made in this release are forward-looking within the meaning of applicable securities laws, including the Company's current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments. Often, but not always, forward- looking statements can be identified by the forward-looking terminology such as the words "may," "will," "expect," "believe," "estimate," "plan," "could," "should," "would," "anticipate," "foresee," "continue," "intends," "trends," "indications," "anticipates," "predicts," "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases. Forward-looking statements are based on current estimates and assumptions made by the Company in light of the Company's experience and perception of historical trends, current conditions and expected future developments, as well as other factors that it believes are appropriate and reasonable in the circumstances. However, there can be no assurance that such estimates and assumptions will prove to be correct. Many factors could cause the Company's actual results, level of activity, performance, achievements, future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors: the possibility that the anticipated synergies and other benefits from the Acquisition will not be realized (partially or at all), or will not be realized within the anticipated time periods; the Company's ability to successfully manage inventory levels; increased or new competition; changing consumer preferences, demand and fashion trends; brand image and reputational risks; customer concentration; success of the Company's marketing and advertising programs; changes in spending of consumers and lower demand, including as a result of macroeconomic factors such as tariffs and inflation; seasonality of business; damage to brands and dependence on vendors; the Company's ability to execute retail strategies; the possibility that the anticipated benefits of the Company's partnerships with third parties will not be realized within anticipated time periods; reduced flexibility due to restrictive debt covenants; future availability of financing and limitations related to changes in the Company's credit ratings; loss of or disruption in centralized distribution centers; civil unrest; extreme or unseasonable weather conditions or natural disasters; international operational risks, including tariffs and political risks; fluctuations in the U.S. dollar and other foreign currencies; supply disruptions; increase in raw material costs; insolvency risk of parties with whom the Company does business or their unwillingness to perform their obligations; risks related to privacy issues and cyber and other security breaches; the Company's ability to upgrade, maintain and secure its information systems to support its needs and protect against cybersecurity threats; loss of intellectual property rights; the Company's ability to make successful acquisitions, investments, expansions and divestitures; ability to maintain adequate financial and management processes and controls; the Company's ability to attract and retain quality employees; risks related to labor costs and other challenges from a large workforce, including a deterioration in labor relations; NMG pension plan funding requirements; limits on insurance policies; exposure to changes in the real estate market; exposure to potential environmental liabilities relating to owned and leased real property; loss of flexibility with respect to properties in the real estate joint ventures; ability to realize the expected benefits from the real estate joint ventures or to effect a future monetization transaction with each of the real estate joint ventures; liabilities associated with lease guarantees and with third parties who have assumed leases from the Company; risks related to regulatory liability; inability to comply with laws and regulations that impact the Company's business, which could lead to litigation or regulatory actions against the Company; tariffs, duties, border adjustment taxes, trade restrictions, sanctions, quotas and voluntary export restrictions on imported merchandise; non-compliance with changing privacy regulatory environment; risks of product liability claims and product recalls; risks related to tax matters; changes in accounting standards and other risks inherent in the Company's business and/or factors beyond the Company's control which could have a material adverse effect; ability to manage indebtedness obligations and cash flow; and the ability of the Company to obtain additional financing on commercially reasonable terms or at all; risks related to increasing indebtedness and other contractual obligations with the Company's strategic partnerships. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. The purpose of forward-looking statements is to provide the reader with a description of management's current expectations regarding the Company's financial performance and may not be appropriate for other purposes; readers should not place undue reliance on forward-looking statements made herein. Furthermore, unless otherwise stated, the forward-looking statements contained in this release are made as of the date of this release, and the Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. The forward-looking statements contained in this release are expressly qualified by this cautionary statement. 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Business Wire
29-05-2025
- Business
- Business Wire
Saks Global Secures $350 Million in New Financing Commitments
NEW YORK--(BUSINESS WIRE)--Saks Global Enterprises LLC (the 'Company') today shared progress against its previously announced measures to strengthen its balance sheet and support its long-term growth. The Company has secured $350 million of financing commitments from SLR Credit Solutions ('SLR') consisting of a $300 million first-in, last-out (FILO) facility for the company and a $50 million secured term loan facility for certain subsidiaries of the Company, providing additional liquidity to support the execution of the Company's business plan. The FILO facility will be incurred as an incremental facility in connection with the Company's existing $1.8 billion asset-based lending (ABL) facility. The funding of the commitments under the respective facilities is subject to customary conditions. The transaction is expected to close on or before June 30, 2025. Marc Metrick, CEO, Saks Global Operating Group said, 'As we have always planned, Saks Global is implementing measures to further bolster liquidity and fortify our balance sheet as we continue executing on our transformation strategy and investing in our business. With the financings announced today, the Company will have approximately $700 million in available liquidity on a pro forma basis. Along with synergy realization and business performance exceeding our plans, we are well positioned to continue delivering for all of our stakeholders, including our brand partners.' Michael Gross, CEO, SLR Capital Partners said: 'We're pleased to support Saks Global and its leadership team as they execute on their strategic plan. This financing reflects our confidence in the company's platform and long-term growth trajectory.' Business Momentum and Outlook The Company continues to see improvements in business performance, with inventory receipt flows improving and synergy realization from integration efforts significantly exceeding plan. Advisors BofA Securities, Inc. served as financial advisor to Saks Global in connection with the FILO facility. Willkie Farr & Gallagher LLP served as legal counsel to Saks Global. About Saks Global Saks Global is a combination of world-class luxury retailers, including Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Saks OFF 5TH, as well as a portfolio of prime U.S. real estate holdings and investments. Saks Global is deeply committed to helping luxury consumers discover the most sought-after established and emerging brands from around the world. Powered by data-driven technology and centered on the customer, Saks Global is on a mission to redefine the luxury shopping experience through highly personalized service, with greater opportunities for product discovery across all channels. About SLR Credit Solutions SLR Credit Solutions (f/k/a Crystal Financial), a portfolio company of SLR Investment Corp., is a leading provider of direct private credit focused on originating, underwriting, and managing asset-based financings. Forward-Looking Statements Certain statements made in this release are forward-looking within the meaning of applicable securities laws, including the Company's current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments. Often, but not always, forward- looking statements can be identified by the forward-looking terminology such as the words 'may,' 'will,' 'expect,' 'believe,' 'estimate,' 'plan,' 'could,' 'should,' 'would,' 'anticipate,' 'foresee,' 'continue,' 'intends,' 'trends,' 'indications,' 'anticipates,' 'predicts,' 'likely' or 'potential' or the negative or other variations of these words or other comparable words or phrases. Forward-looking statements are based on current estimates and assumptions made by the Company in light of the Company's experience and perception of historical trends, current conditions and expected future developments, as well as other factors that it believes are appropriate and reasonable in the circumstances. However, there can be no assurance that such estimates and assumptions will prove to be correct. Many factors could cause the Company's actual results, level of activity, performance, achievements, future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors: the possibility that the anticipated synergies and other benefits from the Acquisition will not be realized (partially or at all), or will not be realized within the anticipated time periods; the Company's ability to successfully manage inventory levels; increased or new competition; changing consumer preferences, demand and fashion trends; brand image and reputational risks; customer concentration; success of the Company's marketing and advertising programs; changes in spending of consumers and lower demand, including as a result of macroeconomic factors such as tariffs and inflation; seasonality of business; damage to brands and dependence on vendors; the Company's ability to execute retail strategies; the possibility that the anticipated benefits of the Company's partnerships with third parties will not be realized within anticipated time periods; reduced flexibility due to restrictive debt covenants; future availability of financing and limitations related to changes in the Company's credit ratings; loss of or disruption in centralized distribution centers; civil unrest; extreme or unseasonable weather conditions or natural disasters; international operational risks, including tariffs and political risks; fluctuations in the U.S. dollar and other foreign currencies; supply disruptions; increase in raw material costs; insolvency risk of parties with whom the Company does business or their unwillingness to perform their obligations; risks related to privacy issues and cyber and other security breaches; the Company's ability to upgrade, maintain and secure its information systems to support its needs and protect against cybersecurity threats; loss of intellectual property rights; the Company's ability to make successful acquisitions, investments, expansions and divestitures; ability to maintain adequate financial and management processes and controls; the Company's ability to attract and retain quality employees; risks related to labor costs and other challenges from a large workforce, including a deterioration in labor relations; NMG pension plan funding requirements; limits on insurance policies; exposure to changes in the real estate market; exposure to potential environmental liabilities relating to owned and leased real property; loss of flexibility with respect to properties in the real estate joint ventures; ability to realize the expected benefits from the real estate joint ventures or to effect a future monetization transaction with each of the real estate joint ventures; liabilities associated with lease guarantees and with third parties who have assumed leases from the Company; risks related to regulatory liability; inability to comply with laws and regulations that impact the Company's business, which could lead to litigation or regulatory actions against the Company; tariffs, duties, border adjustment taxes, trade restrictions, sanctions, quotas and voluntary export restrictions on imported merchandise; non-compliance with changing privacy regulatory environment; risks of product liability claims and product recalls; risks related to tax matters; changes in accounting standards and other risks inherent in the Company's business and/or factors beyond the Company's control which could have a material adverse effect; ability to manage indebtedness obligations and cash flow; and the ability of the Company to obtain additional financing on commercially reasonable terms or at all; risks related to increasing indebtedness and other contractual obligations with the Company's strategic partnerships. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. The purpose of forward-looking statements is to provide the reader with a description of management's current expectations regarding the Company's financial performance and may not be appropriate for other purposes; readers should not place undue reliance on forward-looking statements made herein. Furthermore, unless otherwise stated, the forward-looking statements contained in this release are made as of the date of this release, and the Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. The forward-looking statements contained in this release are expressly qualified by this cautionary statement.
Yahoo
14-05-2025
- Business
- Yahoo
Saks Global's ‘Tight Liquidity' Has S&P Reconsidering Its Credit Rating
Standard & Poor's has Saks Global under the credit microscope. The debt watchdog put the luxury retailer's 'CCC-plus' rating on creditwatch negative due to the company's 'less-than-adequate liquidity' as well as 'the uncertainty of how the company will remedy its current liquidity position.' More from WWD Saks Global Hires Advisers as It Works to Shore Up Liquidity Saks Connections: Luxury Reset and Industry Shake-up Saks Bondholders Prove to Be a Tough Sell S&P said the company's finances will 'likely lead to additional challenges in building seasonal inventory while executing on its synergy initiatives from its acquisition of Neiman Marcus.' A 'CCC' rating means the debt is 'currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions.' Saks purchased competitor Neiman Marcus for $2.7 billion in December — with help from Amazon and Salesforce and an eye toward forging a luxury powerhouse both online and off. To get there, the business is being reset and looking to reverse sales declines. Revenues at the Saks banner fell 20 percent last year due to 'disrupted inventory flow' while Neiman Marcus was down 2 percent, according to S&P. To close the Neiman's deal, Richard Baker, executive chairman and architect of the acquisition, sold $2.2 billion in junk bonds paying 11 percent interest in December. While that looked good then — the debt offering was upsized from $2 billion due to demand — the bloom has come off the rose and the financing has started to look even more aggressive given the uncertain retail environment. Saks chief executive officer Marc Metrick said late last month the company was looking to bolster its balance sheet, exploring the possibility of carving a $300 million FILO facility out of the existing $1.8 billion asset-backed loan. Financial advisers Bank of America and PJT Partners as well as law firms Willkie Farr & Gallagher and Kirkland & Ellis have been brought on board to help. 'I've got a big plan for transformation, I've got to invest in that transformation,' Metrick told WWD at the time. 'I've got to be a strong counterparty to my brand partners and we're seeing a turbulent market. There's a lot of unknowns with what could happen, and I'm further fortifying my balance sheet. That's what I'm doing.' S&P said the proposed FILO facility would give the company additional flexibility and some short-term liquidity relief, but that 'we estimate incremental annual interest expense will further depress [the free operating cash flow] deficit going forward.' Saks is also said to be looking into the sale of assets from its $4.4 billion real estate portfolio, a sale-leaseback transaction or the spinoff of noncore assets. But it's been hard to calm the creditors' nerves. The bonds were trading at 97 cents on the dollar at the start of the year, but dropped to a new low, below 54 cents, on Tuesday. Sources said the company still has access to liquidity of nearly $400 million and is positioned to make its $120 million interest payment on June 30 while also keeping up with vendor payments. Saks' troubles this year started with vendors, who were hoping for more stability after the Neiman's deal closed, but instead got a promise that past-due bills would be paid in installments over a year and that new shipments would be paid in 90 days, not 30. While the worries seemed to migrate from vendors to bondholders this spring, the relationship between vendor and retailer remains key to the financial equation. S&P estimated the company had about $1 billion in outstanding debt on its asset-backed loan as of Feb. 1, a result of the Neiman's deal, delayed vendor payments, seasonal draws and one-time expenses. 'At the same time, the company's efforts to stretch payables have resulted in vendors withholding inventory receipts, which constrained the ABL borrowing base,' S&P said. 'While inventory receipts on [the] Saks banner improved to levels similar to fiscal 2023, which also saw inventory challenges, inventory receipts on [the] Neiman Marcus banner are higher year over year. 'We forecast a [free operating cash flow] deficit for both 2025 and 2026, which could hinder its ability to sustain adequate inventory flow over the next 12 months, including the critical holiday season,' the rating agency said. The S&P update underscores, again, just how fine a line Saks Global is walking as it seeks to reinvent. Not only does the company have to keep vendors on its side, it has to cut costs as it melds Neiman's into Saks to make its financing work. S&P said it revised its assessment of the company's 'tight liquidity' to 'less than adequate' and said its capital structure is 'unsustainable because it is highly dependent on synergies from its acquisition.' Saks has identified $286 million in cost synergies this year, cutting workers and tweaking the supply chain, S&P said. 'Liquidity constraints could lead to delays in the company fully realizing further synergy benefits this year,' the rating agency said. 'In addition, we believe new tariffs and lower operating leverage will negatively affect the company's operating performance.' The pressure is on. S&P said there was at least a 50 percent likelihood that it could lower its rating on Saks 'by up to two notches over the next few weeks to several months as we get more visibility on the company's liquidity position and its ability to service its fixed charges.' Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Saks Global Hires Advisers as It Works to Shore Up Liquidity
Saks Global, which told bondholders two weeks ago that it was looking at options to shore up its balance sheet, has brought some heavy-hitting advisers on board to help with the process. Sources told WWD that the Saks and Neiman Marcus parent is working with financial advisers at Bank of America and PJT Partners as well as legal experts at Willkie Farr & Gallagher and Kirkland & Ellis. More from WWD Saks Connections: Luxury Reset and Industry Shake-up What's the Big Idea? The WWD Beauty CEO Summit Speakers Have Quite a Few Saks Arrived on Amazon, the Trade War Is Still on Its Way Bank of America declined to comment and none of the parties immediately replied to a WWD query on Monday. While PJT and Kirkland are known for their expertise in helping companies navigate distressed situations, sources said Saks is looking to tap into the capital markets and strengthen its liquidity and is not working with the teams that handle other situations, like bankruptcies. The idea is to explore the company's different options and to beef up the balance sheet in 'an efficient manner' and not with a 'hair on fire process,' said one personal familiar with the effort. 'There's money around the edges' that can be tapped into, said the source, adding that every option was being looked at. Executive chairman Richard Baker and chief executive officer Marc Metrick have been working on a high-wire transformation at Saks — from integrating Neiman's and launching a storefront on Amazon to extending payment terms on vendors and smoothing out the finances. While that already seemed an ambitious undertaking when the company sold $2.2 billion in bonds to close the $2.7 billion Neiman's acquisition in December, it is now all the harder in a world scrambled by the Trump administration's on again, off again tariffs. The trade war, the attendant macro uncertainty and the roller-coaster market have especially pressured companies like Saks that are working through a transition. The company is said to still have liquidity of nearly $400 million, as it did when it updated bondholders late last month, and is positioned to make its $120 million interest payment on the bonds next month. But keeping bondholders calm has been a job. While the debt was trading at 97 cents on the dollar at the start of the year, it was going for about 60 cents on the dollar on Monday — a sharp decline for bonds just six months old. Metrick previously told bondholders that the company was working on a $300 million FILO facility that could be tapped quickly and would not add to the debt load as it would be carved out of the existing $1.8 billion asset-backed loan. Work on that is said to be coming along while the new advisers are also helping the Saks explore other options — including the potential sale of some of its $3.5 billion real estate portfolio or a sale-leaseback transaction or tapping into the value of noncore businesses. That would have Saks, which turned to vendors to help it through lean times in the past, digging into its own piggy bank to keep the business moving forward. Sources said the retailer plans to stick to its new 90-day payment terms with vendors while beginning to pay past-due bills to brands in July, as previously laid out. Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange
