- Sara Ehlers |
Tailored Brands, Inc. has officially announced a refinancing for its existing Term Loan due June 2021. The company confirmed on April 9 that the loan's maturity would be extended until April 2025.
The loan has been refinanced and its maturity extended in order to help overall enhance the company. "We are pleased to have refinanced our term loan and extended its maturity at attractive rates," chief financial office Jack Calandra said in a press release. "We continue to execute our strategy to use free cash flow to reduce our debt and improve our financial flexibility."
The Term Loan consisted of 593.4 million dollars in aggregate principle amount with an interest rate of LIBOR plus 3.5 percent and 400 million in aggregate principle amount with a fixed rate of 5 percent per annum, according to the press release. After the refinancing, the company has now made a prepayment of 93.4 million dollars on its existing Term Loan with cash. The end result is that the Term Loan now totals 900 million dollars. The Term Loan was issued at a price equal to 99.5 percent of its face value and an interest rate of LIBOR plus 3.5 percent, maturing on April 9, 2025.