Claire’s replaces multicurrency revolver with new European term loan

By Marisa Wong

Morgantown, W.Va., Jan. 10 – Claire’s Stores, Inc. indirect subsidiary Claire’s (Gibraltar) Intermediate Holdings Ltd. and its subsidiaries entered into a credit agreement on Jan. 5 with Botticelli LLC as administrative agent and Cortland Capital Market Services LLC as collateral agent, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The credit agreement replaces the company’s amended and restated multicurrency revolving credit facility dated Sept. 20 with HSBC Bank plc as lender. The company had announced in early December that it planned to extend the maturity of its existing $50 million European revolver by year’s end, as previously reported.

The lenders under the new European credit agreement are funds and accounts managed by Angelo, Gordon & Co., LP.

The new credit agreement provides for a $50 million secured term loan due Jan. 31, 2019.

Interest accrues at 15% during the first year, with 3% payable in kind, and 12% during the second year.

The credit agreement contains restrictive covenants and requires the company to maintain specified minimum balances of cash and cash equivalents, specified minimum collateral values and specified levels of consolidated total assets and EBITDA.

Neither Claire’s Stores nor any of its U.S. subsidiaries will be party to, or guarantors of, the European credit agreement.

Claire’s is a Hoffman Estates, Ill.-based retailer of fashion accessories and jewelry.

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