J.Jill obtained the necessary consents from its term loan lenders to implement the previously announced financial restructuring transaction on an out of court basis.
J.Jill specifically received consents from lenders holding 97.8% of its term loans on the terms of the transaction that are intended to result in a waiver of any past non-compliance with J.Jill’s credit facilities and provide the company with additional liquidity.
J.Jill expects the transaction to close on or about Sept. 30, 2020, subject to obtaining consent to the transaction and a waiver of all existing non-compliance with the terms of the company’s asset-based credit facility from the requisite lenders under the company’s ABL facility, and finalizing the other terms and documentation related to the transaction. Under the terms of the transaction, the maturity of certain participating term loan debt will be extended to May 2024, all existing non-compliance with the terms of J.Jill’s credit facilities will be waived, J.Jill will be granted a financial covenant holiday under certain participating term loan debt until Q4/21, and J.Jill will receive an investment of no less than $15 million in the form of a junior term loan facility. The transaction provides J.Jill with the financial flexibility to continue to meet its obligations to its vendors in full and continue to execute on its business plan. All vendor claims will be unimpaired and paid in the ordinary course under the transaction.
Kirkland & Ellis is serving as legal counsel, Centerview Partners is serving as financial advisor and investment banker, and AlixPartners is serving as restructuring advisor to J.Jill.
J.Jill is an omnichannel retailer and women’s apparel brand.
