Loehmann's Capital Corp. Announces Extension of Its Pending Exchange Offer

Oct 28, 2010, 09:00 ET from Loehmann's Capital Corp.

MELVILLE, N.Y., Oct. 28 /PRNewswire/ -- Loehmann's Capital Corp. ("Loehmann's") announced today that, in connection with its pending private offer to exchange its outstanding 12% Senior Secured Class A Notes due 2011, Senior Secured Class A Floating Rate Notes due 2011 and 13% Senior Secured Class B Notes due 2011 (collectively, the "old notes") for 12% Senior Secured Class A Notes due 2014, Senior Secured Class A Floating Rate Notes due 2014 and 13% Senior Secured Class B Notes due 2014 (collectively, the "new notes"), it has received valid tenders representing 57.5% in aggregate outstanding principal amount of the old notes.  As a result, Loehmann's is extending the expiration date of the exchange offer until 5:00 p.m., New York City Time, on October 28, 2010 (the "new expiration date").  Additionally, a holder of approximately 34.9% of the aggregate outstanding principal amount of the old notes has agreed that it will tender such old notes prior to the new expiration date, which means that Loehmann's will receive valid tenders representing at least 92.4% in aggregate outstanding principal amount of the old notes prior to the new expiration date.  Eligible holders who validly tender their old notes at or prior to the new expiration date, and do not validly withdraw their tenders will receive, for each $1,000 principal amount of old notes tendered, $1,000 principal amount of new notes.  Subject to the satisfaction or waiver of the conditions to the exchange offer which require (unless waived) valid and unrevoked tenders representing at least 97% in aggregate principal amount of the old notes, Loehmann's will consummate the exchange for any old notes tendered at or prior to the new expiration date on October 28, 2010.  

Subject to applicable law, Loehmann's may terminate or amend, modify or waive the terms of the exchange offer.

The new notes have not been and will not be registered under the Securities Act of 1933 (the "Securities Act"), as amended, or any state securities laws, may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements, and will therefore be subject to substantial restrictions on transfer.

The exchange offer are only being made, and copies of the exchange offer documents will only be made available to, holders of old notes who have certified to Loehmann's in an eligibility letter as to certain matters, including their status as "qualified institutional buyers," as that term is defined under the Securities Act, "qualified purchasers," as that term is defined under the Investment Company Act of 1940 and "disqualified Non-U.S. Holders," as that term is defined in the eligibility letter (collectively, "qualified holders").  Copies of the eligibility letter are available to qualified holders through the information agent, Global Bondholder Services Corporation, Attn:  Corporate Actions, at 65 Broadway, Suite 404, New York, New York 10006, telephone number: 212-430-3774.  A supplemental confidential offering memorandum, dated today, will be distributed to qualified holders.

This press release is neither an offer to sell nor the solicitation of an offer to buy any security. No recommendation is made as to whether the holders of old notes should tender their notes for exchange in the exchange offer.

SOURCE Loehmann's Capital Corp.