NEW YORK, June 16, 2017 /PRNewswire/ -- J.Crew Group, Inc. (the "Company") is pleased to announce that the Company has received consents to the Term Loan Amendment announced on June 12, 2017 from a majority of the lenders under its term loan agreement, the requisite threshold for approval. The Company has currently received consents from holders representing more than 80% of the Term Loan.
The Term Loan Amendment was announced in connection with the offer to exchange any or all of the outstanding $566.5 million aggregate principal amount of 7.75%/8.50% Senior PIK Toggle Notes due 2019 issued by Chinos Intermediate Holdings, A, Inc., an indirect parent company of the Company.
With the requisite consents now having been received to the term loan amendment, direction will be given by the requisite lenders to the Term Loan Agent to immediately stay all litigation activities regarding the Company's intellectual property transactions that occurred in December 2016. Upon the satisfaction of all conditions to the effectiveness of the Term Loan Amendment, the direction will require the Term Loan Agent to withdraw and dismiss, with prejudice, all pending litigation, including any claims that were or could have been asserted between the Company and the Term Loan Agent.
As previously announced, the Company views these transactions as strategically important to its overall effort in positioning the company for long-term success. Addressing the nearest-term maturity removes an overhang in a challenging market environment and provides the company a clear and more confident path to execute its business plan.
Cautionary Note Regarding Forward-Looking Statements
Certain statements herein, including statements regarding the Exchange Offer and Term Loan Transactions and the satisfaction of the conditions to the effectiveness of the Term Loan Amendment, are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events, and actual results of operations may differ materially from historical results or current expectations. Any such forward-looking statements are subject to various risks and uncertainties, including the Company's substantial indebtedness and the indebtedness of its indirect parent, the retirement, repurchase or exchange of its indebtedness or the indebtedness of its indirect parent, its substantial lease obligations, its ability to anticipate and timely respond to changes in trends and consumer preferences, the strength of the global economy, declines in consumer spending or changes in seasonal consumer spending patterns, competitive market conditions, its ability to attract and retain key personnel, its ability to successfully develop, launch and grow its newer concepts and execute on strategic initiatives, product offerings, sales channels and businesses, its ability to implement its growth strategy, material disruption to its information systems, its ability to implement its real estate strategy, adverse or unseasonable weather, interruptions in its foreign sourcing operations, and other factors which are set forth in the section entitled "Risk Factors" and elsewhere in the Offering Memorandum and in the Company's Annual Report on Form 10-K, Quarterly Report on Form 10-Q and in all filings with the SEC made subsequent to the filing of the Form 10-Q. Because of the factors described above and the inherent uncertainty of predicting future events, the Company cautions you against relying on forward-looking statements, whether as a result of new information, future events or otherwise.
About J.Crew Group, Inc.
J.Crew Group, Inc. is an internationally recognized omni-channel retailer of women's, men's and children's apparel, shoes and accessories. As of June 12, 2017, the Company operates 278 J.Crew retail stores, 117 Madewell stores, jcrew.com, jcrewfactory.com, the J.Crew catalog, madewell.com, and 178 factory stores (including 39 J.Crew Mercantile stores). Certain product, press release and SEC filing information concerning the Company are available at the Company's website www.jcrew.com.
SOURCE J.Crew Group, Inc.