At Residence Capitalizing on Retail Closures

At Residence Group Inc. has closed a brand new $200 million personal placement and accomplished a sequence of refinancing transactions to strengthen its steadiness sheet and place the enterprise to benefit from alternatives created by latest aggressive exits within the sector.

“These transactions additional strengthen our monetary place and supply At Residence with incremental capital to assist our development targets and execute on our strategic plan,” mentioned Lee Chicken, chairman & CEO of At Residence. “At Residence’s worth positioning, distinctive product assortment and unmatched choice stay extremely differentiated within the market. With these transactions, we’re capable of additional spend money on our enterprise and strengthen our place because the main vacation spot for dwelling décor. And with vital runway so as to add shops, we consider we’re effectively positioned to proceed our lengthy monitor report of double-digit development within the coming years. We respect the assist from our financing companions who acknowledge the worth of our enterprise and potential for long-term development.”

Beneath the transactions, a subsidiary of the corporate accomplished a personal placement of $200 million mixture principal quantity of 11.500 p.c Senior Secured Notes due 2028, the web proceeds of which have been on-lent to the corporate.

Concurrent with the providing of the New Cash Notes, sure holders of the corporate’s current 7.125 p.c Senior Unsecured Notes due 2029 will trade their Present Unsecured Notes for brand new 7.125 p.c/8.625 p.c Money/PIK Toggle Senior Secured Notes due 2028 issued by the corporate.

The corporate expects to trade roughly $447 million of its Present Unsecured Notes for Change Notes in mixture principal quantity of roughly $412 million, representing an trade of Present Unsecured Notes for Change Notes at 90 p.c of par worth plus accrued curiosity.

The New Cash Notes and the Change Notes weren’t registered beneath the Securities Act of 1933, as amended, or any state securities legal guidelines, and might not be supplied or offered in the US or to U.S. individuals absent registration or an relevant exemption from the registration necessities. The Notes have been supplied solely to certified institutional consumers in accordance with Rule 144A beneath the Securities Act.

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