Vince LLC (VNCE), a prominent fashion brand, has successfully repaid all outstanding amounts under its Term Loan Credit Facility using proceeds from the Asset Sale and terminated the facility. The company has also amended its Amended and Restated Credit Agreement, modifying several terms and conditions in the interest of the business.
Vince LLC has made significant moves in recent times, including the repayment of $7,335 of the Term Loan Credit Facility. The recent Asset Sale provided additional liquidity, allowing the company to fully repay the outstanding amounts under the Term Loan Credit Facility and subsequently terminate it.
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Repaying the Term Loan Credit Facility and Asset Sales
In addition to repaying the Term Loan Credit Facility, Vince LLC completed the sale of intellectual property and ancillary assets of its subsidiary, Rebecca Taylor, Inc., with net cash proceeds of $2,997 used to repay a portion of the Term Loan Credit Facility. The company also completed the sale of intellectual property and ancillary assets of another subsidiary, Parker Lifestyle, LLC, with net cash proceeds of $838 used to repay a portion of the Term Loan Credit Facility.
A&R Revolving Credit Facility Agreement Amendments
The A&R Revolving Credit Facility Agreement, which was amended to reflect the terms of the Term Loan Credit Facility, included (among other changes) a reduction in the borrowing base calculation to exclude Eligible Cash On Hand, the revision of the Cash Dominion Trigger Event threshold, and the deletion of the financial covenant, which was replaced with a requirement to maintain a minimum excess availability over the commitments in the revolving credit facility. These amendments aimed to promote financial stability and growth for the company.
ABL Credit Agreement Amendments and Financing Strategy
The recent amendments made to the ABL Credit Agreement allowed for the sale of the intellectual property related to the Vince brand as part of the Asset Sale. It also replaced LIBOR as an interest rate benchmark with Daily Simple SOFR, subject to a credit spread adjustment of 0.10% per annum, and increased the applicable margin in the loans under the ABL Credit Agreement. With these changes, Vince LLC continues to make adjustments to its financing strategy with the aim of optimizing growth and ensuring stability.
Strategic Financial Moves and Compliance
This series of strategic financial moves by Vince LLC illustrates the company’s effort to maintain compliance with applicable covenants while also actively managing its debt and ensuring access to the necessary funds for the business’s growth. As of now, the company is in compliance with applicable covenants, and a significant amount is available under the revolving credit facility, net of the Loan Cap. This leaves Vince LLC in a very strong position for the future.
In conclusion, Vince LLC’s recent repayment of all outstanding amounts under the Term Loan Credit Facility and amendments made to the A&R Revolving Credit Facility Agreement demonstrate the company’s dedication to maintaining financial stability, optimizing growth, and putting its assets to the best possible use. With a strong focus on financial management, the company seems to be well prepared to face any challenges and continue to achieve success in the fashion world.
Note that we may hold securities mentioned in this article. The source of this article are the SEC filings available at https://www.sec.gov/Archives/edgar/data/1579157/000095017023027589/vnce-20230429.htm that we extracted with the help of various software tools. Even though we have implemented various fact-checking processes, some incorrect information may have remained in the article (false positive). Let us know if you find any inconsistencies!