SECAUCUS, NJ, November 18, 2021 (GLOBE NEWSWIRE) – The Children’s Place, Inc. (Nasdaq: PLCE), the largest specialty children’s clothing retailer in North America, today announced the refinancing of its revolving credit facility and term loan through a new lending group led by a subsidiary of Wells Fargo. The new debt consists of a revolving credit facility with availability of $ 350 million and a term loan of $ 50 million, both with terms of five years, lower interest rates. , reduced reporting requirements and increased flexibility under restrictive covenants.

Robert Helm, Chief Financial Officer, said: “Our strong results have enabled us to complete this refinancing on attractive terms and to achieve a number of other important objectives, including improving our strong liquidity position and the consolidation of our balance sheet with the reduction of the amount of the term loan.

The new revolving credit facility is secured by a first priority lien on substantially all of the Company’s US and Canadian assets, and a second priority lien on the Company’s intellectual property and certain furniture, fixtures and equipment. Interest on the borrowings is payable monthly at LIBOR plus 1.125% or 1.375%, depending on the amount of the Company’s average excess availability under the facility. The installation has an unused line charge of 0.20%.

The new term loan is secured by a first priority lien on the Company’s intellectual property and certain furniture, fixtures and equipment, and by a second priority lien on the assets backing the new revolving credit facility. Interest is payable monthly at LIBOR plus 2.50%. The new term loan does not require amortization if certain conditions are met and is prepayable at any time without penalty.

The company has been advised on the refinancing by EY, and the loan group consists of affiliates of Wells Fargo, Bank of America, JP Morgan, Truist and HSBC.

Additional information about the new revolving credit facility and term loan is contained in the company’s current report on Form 8-K filed with the Securities and Exchange Commission on November 18, 2021.

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About the place of children
The Children’s Place is the largest specialty children’s clothing retailer in North America. The company designs, contracts to manufacture, retail and wholesale, and authorizes the sale of high-quality, fashionable merchandise primarily at value prices, primarily under the exclusive brands “The Children’s Place”, “Place” , “Baby Place”, “Gymboree” and the “Sugar & Jade” brands. The Company has online stores at www.childrensplace.com, www.gymboree.com and www.sugarandjade.com and, as of October 30, 2021, the Company had 703 stores in the United States, Canada and Puerto Rico and the Company’s eight international franchise partners had 221 international distribution points in 17 countries.

Forward-looking statements
This press release contains or may contain forward-looking statements made in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the strategic initiatives of the Company and the adjusted net earnings per diluted share. Forward-looking statements are generally identified by the use of terms such as “may”, “will”, “should”, “plan”, “plan”, “expect”, “anticipate”, “estimate” and similar, although some forward-looking statements are expressed differently. These forward-looking statements are based on the Company’s current expectations and assumptions and are subject to various risks and uncertainties which could cause actual results to differ materially. Some of these risks and uncertainties are described in documents filed by the Company with the Securities and Exchange Commission, including in the “Risk Factors” section of its annual report on Form 10-K for the year ended 30 January 2021. Included among the risks and uncertainties that could cause material differences between actual results and performance are the risk that the Company will fail to assess fashion trends and changing consumer preferences, risks resulting from the highly competitive nature of the Company’s business and its dependence on consumer habits, which may be affected by changes in economic conditions, risks associated with the COVID-19 pandemic, including the impact of the COVID-19 pandemic on our business or the economy in general (including decreased customer traffic, schools adopting learning models remote and hybrid, business closures and other activities resulting in decreased demand for our products and negative impacts on our customers spending habits due to decreased income or real or perceived wealth, and the impact of the CARES Act and other laws related to the COVID-19 pandemic, and any changes to the CARES Act or any other law), the risk that the company’s strategic initiatives to increase sales and margin are delayed or do not result in anticipated improvements, the risk of delays, interruptions and disruptions in the Company’s global supply chain, including resulting from COVID-19 or others epidemics, or from foreign sources of supply in less developed countries, more politically unstable countries or countries where suppliers do not adhere to industry standards or ethical business practices, including the use of forced, contract or child labor, the risk that the cost of raw materials or energy prices increase beyond current expectations or that the Company is not able to compensate for cost increases by value engineering or price increases, various types of litigation, including class legal actions brought under consumer protection, employment, privacy and security laws and regulations information, the imposition of regulations affecting the importation of goods produced abroad, including duties and tariffs, and the uncertainty of weather conditions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. The Company does not undertake to publicly disclose any revisions to these forward-looking statements that may be made to reflect events or circumstances subsequent to the date hereof or to reflect the occurrence of unforeseen events.

Contact: Investor Relations (201) 558-2400 ext. 14500