Claire’s wins interim access to DIP financing; final hearing April 19

By Caroline Salls

Pittsburgh, March 20 – Claire’s Stores, Inc. received court approval to access $105 million of a proposed $135 million of debtor-in-possession financing on an interim basis, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for April 19.

The financing is made up of a $75 million asset-based lending facility and a $60 million last-out term loan. The ABL facility and $30 million of the term loan will be available under the interim order.

Citigroup Global Markets Inc. is the lender.

Interest will be Libor plus 250 bps for the revolver and Libor plus 650 bps for the term loan. Both tranches have a 0% Libor floor.

The maturity date will be one year from closing.

Proceeds will be used to refinance the pre-bankruptcy asset-based lending facility, for general corporate purposes and to fund professional fees, according to court documents.

Claire’s Stores is a Hoffman Estates, Ill., specialty retailer of fashionable jewelry and accessories for young women, teens, tweens and girls ages three to 35. The company filed bankruptcy on March 19 under Chapter 11 case number 18-10584.

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