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J.Jill receives term lender consents for out-of-court restructuring
By Caroline Salls
Pittsburgh, Sept. 14 – J.Jill, Inc. announced Friday that it has obtained the necessary consents from its term loan lenders to implement a previously announced financial restructuring transaction on an out-of-court basis.
According to a company news release, J.Jill received consents from lenders holding 97.8% of the company’s term loans for a transaction that is intended to result in a waiver of any past non-compliance with the company’s credit facilities and provide additional liquidity.
The company said it expects the transaction to close on or about Sept. 30, subject to obtaining consent to the transaction and a waiver of all existing non-compliance with the terms of its asset-based credit facility from the requisite ABL lenders and finalizing the other terms and documentation related to the transaction.
Under the terms of the transaction, the maturity of specified participating term loan debt will be extended to May 2024, all existing non-compliance with the terms of the company’s credit facilities will be waived, J.Jill will be granted a financial covenant holiday under participating term loan debt until the fourth quarter of 2021, and it will receive an investment of no less than $15 million in the form of a junior term loan facility.
J.Jill said the transaction provides it with the financial flexibility to continue to meet its obligations to its vendors in full and continue to execute on its business plan.
All vendor claims will be unimpaired and paid in the ordinary course.
Kirkland & Ellis LLP is serving as legal counsel to the company, Centerview Partners is serving as financial adviser and investment banker, and AlixPartners is serving as restructuring adviser.
J. Jill is a Quincy, Mass.-based multichannel fashion retailer of women’s apparel, accessories and footwear.
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