Tailored Brands borrows $285 million in two draws on ABL revolver

By Wendy Van Sickle

Columbus, Ohio, March 19 – Tailored Brands Inc. drew down a total of $285 million under its asset-based revolving credit facility in two draws this week, according to an 8-K filing with the Securities and Exchange Commission.

On Monday, the company borrowed $260 million under the revolver.

After assessing the remaining availability and determining additional borrowing was prudent to maximize cash on hand, Tailored Brands borrowed an additional $25 million under the ABL facility, which matures on Oct. 25, 2022.

The company said the borrowings “are proactive measures in order to increase its cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the coronavirus outbreak.”

On Tuesday, the company announced it would temporarily close its retail locations in the U.S. and Canada through March 28.

The borrowings bring the total amount outstanding under the ABL facility to $360 million. Letters of credit totaling about $26.5 million were also issued and outstanding.

The current interest rate is about 2.2%.

Tailored Brands is a Fremont, Calif.-based specialty retailer of men’s tailored clothing.

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