CONSHOHOCKEN, Pa., Nov. 15, 2018 /PRNewswire/ -- David's Bridal, the nation's leading bridal and special occasion authority, announced today that it has reached an agreement-in-principle with the vast majority of its term loan lenders and substantially all of its senior noteholders and equity holders on the terms of a restructuring support agreement ("RSA") that will reduce the Company's debt by more than $400 million and provide significant financial flexibility to support the Company's long-term growth prospects. The agreement-in-principle is subject to the execution and delivery of definitive documentation.
David's Bridal has sufficient liquidity to meet its business obligations and will continue to operate its business as usual throughout the financial restructuring process. Customers can continue to shop across the more than 300 David's Bridal stores and online without disruption. Orders will arrive on time and bridal appointments will not be impacted. Follow the link to view a message to customers from Scott Key, Chief Executive Officer of David's Bridal, here.
"David's Bridal will continue to lead our category with an unbeatable selection of beautiful, high-quality wedding and special occasion dresses in a wide range of styles, colors, sizes, and prices," said Scott Key, Chief Executive Officer of David's Bridal. "For 60 years David's has delivered for our customers on time, and the agreement announced today allows us to maintain that tradition for many years to come."
Mr. Key added, "The restructuring plan is the culmination of extensive discussions with our lenders, noteholders and equity holders, and it provides an expedited path to significantly reduced debt and enhanced financial flexibility. We want to thank each of our stakeholders for their confidence in David's Bridal and for their efforts as we move forward as an even stronger company. As part of the agreement, our lenders have committed substantial new capital to fund the Company's operations and support the business throughout the restructuring process."
To implement the financial restructuring contemplated by an RSA, the Company expects to voluntarily file for reorganization under Chapter 11 of the United States Bankruptcy Code in the near future. Operations will continue as usual throughout the court-supervised process, including meeting and exceeding customer expectations and needs.
As part of the agreement-in-principle, David's Bridal's term loan lenders have committed more than $40 million in new financing, which, in addition to existing cash on hand, will support the Company's continued operations. The long-standing vendor and manufacturing partner relationships essential to David's success are unimpaired during restructuring.
Debevoise & Plimpton LLP is serving as the Company's legal advisor, Evercore LLC is serving as its financial advisor and AlixPartners LLP is serving as its restructuring advisor.
About David's Bridal
With more than 60 years of experience dressing women for all of life's special occasions, David's Bridal is built on the ideal that every woman deserves to have the dress of her dreams regardless of her style preference, shape, size or budget. We believe in inclusivity, authenticity and empowerment and it is our mission to help every woman find the bridal gown that will allow her to be the best, most genuine version of herself on her wedding day. David's Bridal is dedicated to helping each customer find her perfect dress with the assistance of online planning tools, knowledgeable stylists, and expert seamstresses who will guide her through her entire dress buying journey. With more than 300 stores located across the US, Canada, UK, and franchise locations in Mexico, we offer the convenience of one-stop shopping for the bride and her entire bridal party. To learn more about David's Bridal, visit http://www.davidsbridal.com and connect on social media through Pinterest, Instagram, Facebook and Twitter.
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SOURCE David’s Bridal