BELK OUTLINES PLANS FOR CHAPTER 11 BANKRUPTCY

Belk reaffirmed on Monday that it expects to complete its financial restructuring through an expedited “pre-packaged, one-day” reorganization. The company expects to file for Chapter 11 on February 24th and anticipates that the confirmation hearing to approve the restructuring will be held on the same day, at 2:00 p.m. Central Time.

Lenders holding 99 percent of Belk’s first-lien term loan and 100 percent of Belk’s second lien term loan have now entered into the previously announced Restructuring Support Agreement (RSA). The RSA enables Belk to raise $225 million of new capital, significantly reduce debt by approximately $450 million, and extend maturities on all term loans to July 2025.

Belk plans to continue normal operations throughout its financial restructuring. Under the RSA, suppliers will be unimpaired and will continue to be paid in the ordinary course for all goods and services provided to the company. Customers will continue to receive the quality merchandise and service they expect when shopping at Belk’s stores across the Southeast and online at Belk.com.

Under the terms of the RSA, Sycamore Partners will retain majority control of Belk. Belk has secured financing commitments for $225 million in new capital from Sycamore Partners, leading global investment firms KKR and Blackstone Credit, and certain existing first-lien term lenders.

Belk has also secured an extension of the early consent deadline for additional lenders to provide commitments for the $225 million of new capital. The commitment deadline has been extended to 4:00 p.m. Central Time on February 11th, although additional commitments are not required for successful completion of the restructuring. Members of an ad hoc crossover lender group led by KKR Credit and Blackstone Credit and other participating lenders will acquire a minority ownership in the retailer.