After almost five months under bankruptcy protection, Neiman Marcus Holding Co., formerly the Neiman Marcus Group, has emerged from Chapter 11.
The company maintained that it had successfully completed its restructuring process and implemented a plan of reorganization that was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on September 4.
The company asserted that it has emerged from bankruptcy protection with the full support of its creditors and new equity shareholders, and is 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 new owners are funding a $750 million exit financing package that fully refinances its debtor-in-possession loan, Neiman Marcus noted, and provides additional liquidity for the business. The company has also secured a $125 million first-in, last-out facility led by Pathlight to refinance existing debt and provide liquidity to support ongoing operations and strategic initiatives. The exit term loan financing and FILO facility are in addition to the liquidity provided by the $900 million asset-based lending facility 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, Neiman Marcus indicated that it expects to execute on the strategic initiatives that will ensure a long and successful future.
“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, Neiman Marcus Group CEO. “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, which include PIMCO, Davidson Kempner Capital Management, and Sixth Street, understand the value of our brands and the opportunity for growth. 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.”