Loehmann's extends early exchange deadline, gets needed consents

By Angela McDaniels

Tacoma, Wash., Oct. 14 - Loehmann's Capital Corp. has received consents from holders of more than 50% of its 12% senior secured class A notes due 2011, floating-rate senior secured class A notes due 2011 and 13% senior secured class B notes due 2011, according to a company news release.

A consent solicitation and private exchange offer for the notes began Sept. 24.

As a result of the consents received, Loehmann's will now be able to increase the priority lien cap under its lease agreement and intercreditor agreement to $45 million from $35 million, which will allow for a corresponding increase in the amount available under Loehmann's Operating Co.'s revolving credit facility.

In addition, Loehmann's Operating will be able to close up to 15 underperforming stores in the next 12 months and liquidate the inventory in those stores.

The company also extended the early tender deadline to 11:59 p.m. ET on Oct. 22 from Oct. 13.

As previously reported, the company is offering 12% senior secured class A notes due 2014, floating-rate senior secured class A notes due 2014 and 13% senior secured class B notes due 2014 in exchange for the three series of outstanding notes.

Holders who tender by the early tender deadline will receive $1,000 of new notes in the same class as their existing notes per $1,000 of the existing notes.

Those who tender after the early tender deadline but before the expiration date of 11:59 p.m. ET on Oct. 27 will receive $970 of new notes per $1,000 of old notes.

Holders tendering old notes for exchange will be deemed to have granted their consents, and consents may not be delivered without tendering.

The exchange is being carried out as a private offer to qualified institutional buyers.

Loehmann's said it has entered into agreements to participate with holders of 34% of the existing notes.

The completion of the exchange offer is subject to conditions including the receipt of tenders for 97% of the existing notes.

The information agent is Global Bondholder Services Corp. (212 430-3774).

Loehmann's is a Melville, N.Y.-based retailer of women's clothing.

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