“We continue to drive innovation and are making long-term investments in technology and customer-centric capabilities that will both enrich the shopping experience and position the company for long-term growth” said Geoffroy van Raemdonck, chief executive officer of Neiman Marcus Group.
On the brighter side, the company said it reached a final settlement with creditors on its previously announced exchange offers, essentially extending loan maturities to 2023 and 2024, from 2020 and 2021, giving the company breathing room to sustain operations and support efforts to rev up its retail businesses and pay down debt.
The $5 billion NMG has about $4.6 billion in debt, including a $2.8 billion term loan due in October 2020, and two sets of bonds and an asset-backed loan due in 2021, amounting to roughly $1.8 billion.
But last week, as expected, the company accepted tenders and consents from holders of roughly $1.5 billion in notes, which were exchanged for $730,534,000 principal amount of new 8 percent third lien notes due 2024, $497,849,150 principal amount of new 8.75 percent third lien notes due 2024, and 250,000,000 shares of series A preferred stock of MYT Holding Co., which is a newly formed U.S. holding company for NMG Germany, which operates MyTheresa.
About $137.3 million aggregate principal amount of the existing notes remain outstanding.
In addition, NMG amended its existing term loan facility so it has an extended maturity date of Oct. 25, 2023, representing about 99.5 percent of the total outstanding principal amount of existing term loans. Including a partial prepayment, about $2.25 billion of extended term loans and about $12.7 million of existing term loans remain outstanding under the agreement.