Overview

• The financing package comprises a $300 million first-in, last-out loan from holders of the company’s 11% bonds and a $300 million bond exchange issuing new notes with the same coupon and 2029 maturity.
• Creditors who decline the exchange will see their debt relegated to the bottom of Saks Global’s capital structure and lose key covenant protections.
• This deal replaces a prior $350 million commitment from SLR Credit Solutions and lifts the company’s cash reserves to roughly $700 million.
• Saks Global has accelerated integration and restructuring efforts aimed at cutting $600 million in annual costs through store-team consolidations and fulfillment-center closures.
• Facing about $4 billion in debt and a 10% revenue decline in fiscal 2024, the retailer will begin repaying roughly $275 million in overdue vendor bills starting in July.