CHARLOTTE, N.C. – Lenders to Belk now have assumed greater control over the regional division retailer and offered recent financing.
The corporate introduced that it has accomplished a deleveraging transaction with KKR and Hein Park – its first and second lien its lenders – in addition to its fairness sponsor, Sycamore Companions.
The transaction chopped Belk’s outstanding debt by greater than $950 million. Concurrently, the corporate amended its current asset-based credit score facility to increase the maturity date to July 2029 and secured roughly $485 million in new capital. That features $275 million of secured time period loans and a $210 million securitization facility secured by income streams from the retailer’s loyalty bank card program.
The upshot: A few of Belk’s current lenders, together with funds related to KKR and Hein Park, could have a controlling curiosity within the privately held enterprise.
The transaction “marks a pivotal milestone for Belk as we transfer into the longer term with a capital construction that positions our enterprise for sustainable, long-term development and profitability,” mentioned Don Hendricks, Belk’s CEO.
He added, “We’re assured that our stronger steadiness sheet will allow us to construct on the momentum and development we’ve seen in current quarters, higher serve our prospects and their communities and be a good stronger associate to our distributors.”
Belk at present owns slightly below 300 Belk shops in 16 Southeastern states.
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