Neiman Marcus completes refinancing; debt maturities pushed to 2026

By Sarah Lizee

Olympia, Wash., March 30 – Neiman Marcus Group Ltd. LLC completed the refinancing of a substantial portion of its exit facilities with $1.1 billion of new 7 1/8% senior secured notes due 2026 issued by NMG Holding Co., Inc. and Neiman Marcus Group LLC, according to a press release issued late Tuesday.

The transaction, initially sized at $1 billion, was increased to $1.1 billion in response to demand from institutional investors, the company said.

Neiman Marcus said the refinancing positions the company for long-term profitability with a simplified capital structure, lowered interest payments by more than $30 million per year, extended debt maturities to 2026, improved financial flexibility and further strengthened liquidity.

The company used the net proceeds of the refinancing to repay in full the $123.6 million outstanding under its existing first-in, last-out term loan facility, the $697.4 million outstanding under its existing term loan credit facility and the $50.8 million outstanding under its senior secured floating-rate notes due 2025 and to pay related interest, premiums and expenses.

The company will use the remainder of the proceeds for general corporate purposes, including repayment of the entire $75 million currently outstanding under its $900 million asset-based revolver. Upon repayment, the company will have no outstanding borrowings under the facility, and outstanding net debt will be about $850 million after the paydown.

As previously reported, the company’s Chapter 11 plan of reorganization was confirmed on Sept. 4, 2020, and the plan went into effect on Sept. 25, 2020.

Neiman Marcus is a Dallas-based department store and catalog retailer. The company filed bankruptcy on May 7, 2020 under Chapter 11 case number 20-32519.

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