Crystal Financial completed an $80 million secured term loan for The Children’s Place, a pure-play children’s specialty apparel retailer in North America. The Children’s Place will use the net proceeds from the term loan to repay borrowings under its secured revolving credit facility with certain banks.

“We are pleased to have completed the $80 million term loan financing with Crystal Financial,” Michael Scarpa, CFO for The Children’s Place, said. “The term loan will provide the company with additional capital, further strengthening our financial position and providing financial flexibility.”

The term loan is secured by a first lien on The Children’s Place’s intellectual property and certain other assets, and a second lien on the assets securing the revolving credit facility. Interest is payable monthly at the greater of the three month LIBOR and 1%, plus 7.75% or 8.00% depending on the average excess availability of credit under the revolving credit facility. The term loan is payable in quarterly installments beginning with The Children’s Place’s fiscal quarter ending on or around July 31, 2021 and matures on the earlier of Oct. 5, 2025 and the maturity of the revolving credit facility.

Also, in connection with the term loan financing, The Children’s Place entered into an amendment to its revolving credit facility providing for certain changes that permit the term loan and align the terms of the revolving credit facility to those of the term loan.