Lands’ End Announces New Term Loan and Expanded ABL Facility

Lands' End, Inc. (NASDAQ: LE) today announced that it has secured a new term loan of $275 million.  The loan proceeds, combined with borrowings under the Company’s ABL Facility, were used to refinance the Company’s term loan, which was due in April 2021.  Upon the closing of the refinancing, maximum availability under the ABL Facility was expanded by $75 million to $275 million.

“We are pleased to announce the completion of this refinancing, which accomplished several important objectives, including extending our debt duration and further enhancing our strong liquidity position with a more flexible balance sheet,” stated Jim Gooch, Chief Financial Officer of Lands’ End. “The strong performance we delivered in the second quarter provided further leverage for us to successfully complete this financing with attractive terms.  Our dynamic eCommerce foundation, limited brick and mortar exposure and key item basics business, successfully combined with our lean operating structure, enabled us to more than triple EBITDA in the second quarter compared to the prior year. With the strong momentum in our business, along with this enhanced financial flexibility, we are optimally positioned to continue to execute our long-term growth strategies.”

The loan is secured by a first lien on all non-ABL assets and a second lien on all ABL assets.  Interest is payable monthly at 9.75% per annum plus the greater of LIBOR or 1.0%. Amortization is payable quarterly at 1.25% of original principal amount. The loan matures in September 2025.

The Company was advised on the transaction by JP Morgan, and the lending group consisted of affiliates of Fortress Investment Group, STORY3 Credit Partners and Blue Torch Capital.

The refinancing announcement follows the release of strong second quarter results on September 2, 2020 that were highlighted by a 23.6% revenue growth in Global ecommerce, net income of $4.4 million (compared to a net loss of $3.0 million in the same period last year) and adjusted EBITDA of $23.9 million, more than triple the same period last year.

Jerome Griffith, Chief Executive Officer and President, stated, “We are very pleased to have delivered a strong second quarter leveraging the strong momentum in our global eCommerce business. Our performance reflects the execution of our strategies related to product innovation, our global eCommerce platform, data-driven marketing and commitment to optimizing our business processes and infrastructure. We will continue to build on our offering of high-quality value-oriented product assortments with growth strategies that expand our customer reach. To cap this period with a successful refinancing of our term loan debt positions us for future growth and success.”

About Lands' End, Inc.

Lands' End, Inc. (NASDAQ:LE) is a leading uni-channel retailer of casual clothing, accessories, footwear and home products. We offer products online at www.landsend.com, on third party online marketplaces and through retail locations. We are a classic American lifestyle brand with a passion for quality, legendary service and real value, and seek to deliver timeless style for women, men, kids and the home.