francesca’s® Announces $10 million Term Loan Agreement Completion of Strategic Alternatives Review
“We are pleased to provide additional liquidity at this important point in francesca’s evolution,” said
The Term Loan Credit Agreement provides for an aggregate term loan of
The Term Loan Credit Agreement contains customary affirmative and negative covenants, including limitations, subject to customary exceptions in addition to limitations on the amount of capital expenditures that francesca’s is permitted to make through the fiscal year ending in 2021, provided that the loan parties may make unlimited amounts of capital expenditures if certain payment conditions are met. Further details about the Term Loan Credit Agreement will be contained in a Current Report on Form 8-K to be filed by the Company with the
Concurrently with the Term Loan Credit Agreement, the Company obtained an amendment from the lenders under its existing asset based revolving credit facility to permit the new financing.
francesca's® is a specialty retailer which operates a nationwide-chain of boutiques providing customers a unique, fun and personalized shopping experience. The merchandise assortment is a diverse and balanced mix of apparel, jewelry, accessories and gifts. As of
Certain statements in this release are “forward-looking statements” made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements reflect the Company’s current expectations or beliefs concerning future events and are subject to various risks and uncertainties that may cause actual results to differ materially from those that are expected. These risks and uncertainties include, but are not limited to, the following: the risk that the Company may not be able to successfully execute its turnaround plan; the risk that the Company may not be able to successfully integrate its Interim Chief Executive Officer and Chief Financial Officer, and attract and integrate a new Chief Executive Officer; the risk that the Company cannot anticipate, identify and respond quickly to changing fashion trends and customer preferences or changes in consumer environment, including changing expectations of service and experience in boutiques and online, and evolve its business model; the Company’s ability to attract a sufficient number of customers to its boutiques or sell sufficient quantities of its merchandise through its ecommerce website; the Company’s ability to successfully open, close, refresh, and operate our boutiques each year; the Company’s ability to efficiently source and distribute merchandise quantities necessary to support its operations; and the impact of potential tariff increases or new tariffs. For additional information regarding these and other risks and uncertainties that could cause actual results to differ materially from those contained in the Company’s forward-looking statements, please refer to “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended February 3, 2019 filed with the SEC on May 3, 2019 and any risk factors contained in subsequent quarterly and annual reports it files with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement.
Cindy Thomassee 832-494-2240
Kate Venturina 713-864-1358 ext. 1145
Source: Francesca's Holdings Corporation