Tailored Brands refinanced its existing term loan, upsizing its aggregate principal amount to $900 million. JPMorgan acted as lead arranger, administrative agent and joint book runner on the transaction.
Tailored Brands Chief Financial Officer Jack Calandra said, “We are pleased to have refinanced our term loan and extended its maturity at attractive rates. We continue to execute our strategy to use free cash flow to reduce our debt and improve our financial flexibility.”
Immediately prior to the refinancing, the term loan consisted of $593.4 million in aggregate principal amount with an interest rate of LIBOR + 3.50% and $400 million in aggregate principal amount with a fixed rate of 5.0% per annum. Upon entering into the refinancing, the company made a prepayment of $93.4 million on its term loan using cash on hand.
The new term loan was issued at a price equal to 99.5% of its face value, with an interest rate of LIBOR + 3.50% and a maturity date of April 9, 2025, subject to a springing maturity provision relative to the company’s senior notes.
Bank of America Merrill Lynch and Wells Fargo Securities acted as joint lead arrangers and joint book runners for the syndicated credit facility.
Tailored Brands is a specialty retailer of men’s tailored clothing and a men’s formalwear provider in the U.S. and Canada.
