David’s Bridal Inc. has received firm commitments for $55 million of new capital from existing lenders to fund growth investments. Additionally, the company reached an agreement in principle with its lenders to exchange $276 million of its existing term loans into new preferred and common equity securities.
The recapitalization transaction has received unanimous support from existing lenders and will result in total funded debt of approximately $75 million. The company’s existing $125 million revolving credit facility will remain in place with an extended maturity and is expected to be unfunded.
CEO Jim Marcum in a statement, “These transactions will provide us with the financial resources and flexibility necessary to focus on changing the David’s Bridal experience by modernizing our branding and marketing, investing in tools and platforms to support brides during the entire wedding planning process, and enhancing the customer experience in-stores and online.”
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as the company's legal adviser and Greenhill & Co., LLC served as financial adviser.