J.Jill Obtains Necessary Consents to Implement out of Court Consensual Financial Restructuring Transaction

- Term loan lenders holding 97.8% of the outstanding principal amount under our term loan facility and shareholders holding a majority of the equity of the company support the Transaction

- The Transaction provides additional liquidity and the financial flexibility to continue to meet its obligations in full and continue to execute on its business plan

- Transaction expected to close on or about September 30, 2020

J.Jill, Inc. (NYSE JILL) (the “Company”) today announced it has obtained the necessary consents from its term loan lenders to implement the previously announced financial restructuring transaction (“Transaction”) on an out of court basis. The Company received consents from lenders holding 97.8% of the Company’s term loans (“Consenting Lenders”) on the terms of the Transaction that are intended to result in a waiver of any past non-compliance with the Company’s credit facilities and provide the company with additional liquidity.

The Company expects the Transaction to close on or about September 30, 2020, subject to obtaining consent to the Transaction and a waiver of all existing non-compliance with the terms of the Company’s asset-based credit facility (“ABL Facility”) from the requisite lenders under the Company’s ABL Facility, and finalizing the other terms and documentation related to the Transaction. Under the terms of the Transaction, the maturity of certain 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, the Company will be granted a financial covenant holiday under certain participating term loan debt until Q4 2021, and will receive an investment of no less than $15 million in the form of a junior term loan facility. The Transaction provides J.Jill with the financial flexibility to continue to meet its obligations to its vendors in full and continue to execute on its business plan.

As previously announced, all vendor claims will be unimpaired and paid in the ordinary course under the Transaction. Additional information regarding the Transaction, including certain conditions to the consummation of the Transaction, can be found in our Current Report on Form 8-K filed with the Securities and Exchange Commission on September 1, 2020 and available on www.sec.gov.

Kirkland & Ellis LLP is serving as legal counsel to the Company, Centerview Partners is serving as the Company’s financial advisor and investment banker, and AlixPartners is serving as the Company’s restructuring advisor.

About J.Jill

J.Jill is a premier omnichannel retailer and nationally recognized women’s apparel brand committed to delighting customers with great wear-now product. The brand represents an easy, thoughtful and inspired style that reflects the confidence of remarkable women who live life with joy, passion and purpose. J.Jill offers a guiding customer experience through more than 280 stores nationwide and a robust e-commerce platform. J.Jill is headquartered outside Boston. For more information, please visit www.jjill.com or http://investors.jjill.com.

Contacts

Investor Contact:

Caitlin Churchill
ICR, Inc.
investors@jjill.com
203-682-8200

Media Contact: