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Neiman Marcus completes 1.1 billion dollar refinancing

By Huw Hughes

Mar. 31, 2021


US luxury retail group Neiman Marcus has completed a 1.1 billion dollar refinancing about six months after emerging from bankruptcy.

The company announced Tuesday it has completed the refinancing of a substantial portion of its exit facilities with an aggregate principal amount of 1.1 billion dollars of new 7.125 percent senior secured notes due 2026.

The transaction was initially sized at 1 billion dollars but was increased “in response to demand from institutional investors”. Neiman Marcus said it will use the money to repay borrowings.

“This refinancing validates the momentum we are seeing as we continue to execute on our strategic transformation plan amidst improved market conditions,” said Neiman Marcus Group executive vice president and chief financial officer Brandy Richardson in a statement.

“Confidence from our investors is reflected in final pricing terms and the size of the offering. We have additional financial flexibility as we invest in our supply chain, elevate our digital excellence and deliver unparalleled luxury experiences.”

It comes after the group emerged from bankruptcy back in September 2020 after filing for Chapter 11 earlier that year. The restructuring process resulted in a reduction of 4.4 billion dollars of existing debt and 200 million dollars in annual interest payments. It also saw the company’s senior lenders - PIMCO, Davidson Kempner Capital Management and Sixth Street - becoming the new owners in a debt for equity swap.

Image: Neiman Marcus