TSL Express Daily News

Company completes refinancing of a substantial portion of its exit facilities with new senior secured notes

Debt maturities extended to 2026

Annual interest expense reduced by more than $30 million per year

Simplifies capital structure, enhances financial flexibility, and strengthens liquidity position

Neiman Marcus Holding Company, Inc. today announced the completed refinancing of a substantial portion of its exit facilities with an aggregate principal amount of $1.1 billion of new 7.125% senior secured notes due 2026 issued by NMG Holding Company, Inc., a Delaware corporation, and The Neiman Marcus Group LLC, a Delaware limited liability company. The transaction, initially sized at $1 billion, was increased to $1.1 billion in response to demand from institutional investors.

"This refinancing validates the momentum we are seeing as we continue to execute on our strategic transformation plan amidst improved market conditions," said Brandy Richardson, Executive Vice President and Chief Financial Officer, Neiman Marcus Group. "Confidence from our investors is reflected in final pricing terms and the size of the offering. We have additional financial flexibility as we invest in our supply chain, elevate our digital excellence and deliver unparalleled luxury experiences."

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 $75.0 million currently outstanding under its $900-million asset-based revolving credit facility. Upon repayment, the Company will have no outstanding borrowings under this facility and outstanding net debt will be approximately $850 million after paydown of the asset-based revolving credit facility.

This press release notice does not constitute an offer to sell or the solicitation of an offer to buy any security, nor shall there be any sale of the Notes or any other security of the Issuers, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Neiman Marcus Group

Neiman Marcus Group is a luxury, multi–branded, omnichannel fashion retailer conducting integrated store and online operations under the Neiman Marcus, Bergdorf Goodman, Neiman Marcus Last Call, and Horchow brand names. For more information, visit http://www.neimanmarcusgroup.com.