Neiman Marcus Holding Company, formerly the Neiman Marcus Group, has emerged from voluntary Chapter 11 protection, successfully completing its restructuring process and implementing the Plan of Reorganization that was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division on September 4th.
The company emerges with the full support of its creditors and new equity shareholders, now operating with a strengthened capital structure that eliminated more than $4 billion of existing debt and more than $200 million of cash interest expense annually, with no near-term maturities.
The retailer also emerges with new owners including PIMCO, Davidson Kempner Capital Management, and Sixth Street. These companies are now funding a $750 million exit financing package that fully refinances the debtor-in-possession loan and provides significant additional liquidity for the business.
The company has also secured a $125 million FILO facility led by Pathlight, the proceeds of which refinance existing debt and will provide liquidity to support the company’s ongoing operations and strategic initiatives. The exit term loan financing and FILO facility are in addition to the liquidity provided by the $900 million ABL led by Bank of America and a consortium of commercial banks. With the support of its new shareholders and funds available from the exit financing, FILO facility, and ABL facility, the company expects to be able to execute on the strategic initiatives to ensure a long and successful future for Neiman Marcus.
“With the successful implementation of our restructuring, Neiman Marcus and Bergdorf Goodman will continue to be the preeminent luxury shopping destinations for years to come,” said Geoffroy van Raemdonck, chief executive officer of Neiman Marcus Group. “While the unprecedented business disruption caused by COVID-19 has presented many challenges, it has also given us the opportunity to reimagine our platform and improve our business. We emerge from Chapter 11 as a stronger, more innovative retailer, brand partner, and employer.”
“Our new owners understand the value of our brands and the opportunity for growth,” continued van Raemdonck. “They are also strongly committed to supporting our company on sustainability issues – where we intend to be a leader within the industry. At the conclusion of this process, I remain profoundly impressed by the strength of Neiman Marcus and Bergdorf Goodman, the commitment of our associates, the unwavering support of our brand partners, and the loyalty of our customers.”