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Saks Global Secures $350 Million Financing, Boosting Liquidity to $700 Million

Repayment of $275 million in vendor back bills begins in July under a five-year plan to capture $600 million in efficiency gains.

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Overview

  • Saks Global’s $350 million financing package includes a $300 million FILO facility and a $50 million term loan from SLR Credit Solutions.
  • Bondholders are scrutinizing ambiguous lien language on the Fifth Avenue flagship store for their $2.2 billion bond investment, even as prices climbed above 47 cents on the dollar.
  • The merged company aims to achieve a $285 million cost reduction run rate by year-end as part of its five-year, $600 million savings target.
  • Beginning in July, Saks will start monthly installments totalling $275 million to resolve vendor back payments and restore stalled inventory deliveries.
  • Fiscal 2024 revenues fell 10% to $7.3 billion, producing a $102 million adjusted EBITDA loss that was partly offset by $42 million in post-merger Neiman Marcus earnings.