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Initiates Pre-Arranged Chapter 11 Process with Support from Lenders to Significantly Reduce Debt and Facilitate Comprehensive Balance Sheet Restructuring

Obtains Commitment from Existing Stakeholders to Provide Up to $90 Million in New Financing

NEW YORK, Feb. 28, 2024 /PRNewswire/ -- Thrasio Holdings, Inc. ("Thrasio" or "the Company") today announced that it has entered into a restructuring support agreement (the "Restructuring Support Agreement") with approximately 81% of its revolving credit facility lenders and approximately 88% of its term loan lenders that will eliminate approximately $495 million of the Company's existing debt, defer all interest payments in the first year post-emergence and infuse new capital into the Company. To implement the terms of the Restructuring Support Agreement, Thrasio has initiated a pre-arranged court-supervised Chapter 11 process in the U.S. Bankruptcy Court for the District of New Jersey (the "Court").

Thrasio expects to use this process to strengthen its financial position and meaningfully deleverage its balance sheet. The Company will continue to operate its business normally and without interruption throughout the Chapter 11 process. Thrasio aims to complete the process on an expedited basis. 

Thrasio has received commitments from certain of its lenders for up to $90 million in new financing. This infusion of new capital is expected to provide sufficient liquidity to support the Company throughout this process and beyond. In particular, the financing will enable the continued operation of Thrasio's brands, support ongoing business operations and provide the Company with access to new capital upon emergence from Chapter 11 to support go-forward business operations.

"Over the past year, we have made significant progress transforming the business and advancing our objective to introduce hundreds of brands to millions of customers," said Greg Greeley, Chief Executive Officer of Thrasio. "We are taking steps to build on this progress by strengthening our financial position and working with our lenders to support our future success. Thrasio is one of the largest third-party sellers on the Amazon marketplace, and with a strengthened balance sheet and new capital, we will be better equipped to support our brands, scale our infrastructure and enable future opportunities."

Mr. Greeley added, "We appreciate the constructive engagement we've had with our lenders to date, and we look forward to continuing to work together towards the best path for the business and all our stakeholders. We are also grateful to our customers and partners for their support, and to our employees for their continued hard work and dedication. As we move forward, our team remains focused on supporting our brands by delivering exciting, innovative and beloved products."

The Company has filed a number of customary motions with the Court seeking authorization to support its operations, including the payment of employee wages, salaries and benefits without interruption. The Company expects to receive approval of these motions in the coming days. Thrasio intends to pay vendors and suppliers in full for goods and services provided during the Chapter 11 cases.

Additional information is available on Thrasio's restructuring website at ThrasioRestructuring.com. Court filings and other information related to the proceedings are available on a separate website administrated by the Company's claims agent, KCC, at https://www.kccllc.net/Thrasio; by calling KCC's representatives toll-free at (866) 967-0496 or (310) 751-2696 for calls originating outside of the U.S. or Canada; or by emailing KCC at www.kccllc.net/Thrasio/inquiry.

Kirkland & Ellis LLP is serving as legal counsel, Centerview Partners is serving as financial advisor and AlixPartners LLP is serving as restructuring advisor.

Thrasio is the next-generation consumer goods company reimagining how the world's most-loved online marketplace products become accessible to everyone. Thrasio was cofounded in 2018 by Joshua Silberstein.

This press release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Thrasio and its subsidiaries and certain plans and objectives with respect thereto. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as "anticipate", "target", "expect", "enable", "estimate", "intend", "plan", "goal", "believe", "hope", "aims", "continue", "will", "may", "should", "would", "could", or other words of similar meaning. These statements are based on assumptions and assessments made by the Company and its perception of historical trends, current conditions, future developments and other factors. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this document could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements.  Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this document. The Company does not assume any obligation to update or correct the information contained in this document (whether as a result of new information, future events or otherwise), except as may be required by applicable law.

There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business, competitive, market, supply chain and regulatory forces, future exchange and interest rates, changes in tax rates and any future business combinations or dispositions, uncertainties and costs related to the Restructuring Support Agreement and the Chapter 11 process, including, among others, potential adverse effects of the Chapter 11 process on the Company's liquidity and results of operations, including with respect to its relationships with its customers, distribution partners, suppliers and other third parties; employees attrition and the Company's ability to retain senior management and other key personnel due to the distractions and uncertainties inherent in the Chapter 11 process; the impact of any cost reduction initiatives; any other legal or regulatory proceedings; the Company's ability to obtain operating capital, including complying with the restrictions imposed by the terms and conditions of any debtor-in-possession financing, such as the financing mentioned herein; the length of time that the Company will operate under Chapter 11 protection; the timing of any emergence from the Chapter 11 process; and the risk that any plan of reorganization resulting therefrom may not be confirmed or implemented at all. Please see the plan of reorganization and related disclosure statement (as may be amended, modified or supplemented) that will be filed with the Court for additional considerations and risk factors associated with the Company's Chapter 11 process.

Nothing in this press release is intended as a profit forecast or estimate for any period and no statement in this press release should be interpreted to mean that the financial performance for the Company for the current or future financial years would necessarily match or exceed its historical results.

Further, this press release is not intended to and does not constitute and should not be construed as, considered a part of, or relied on in connection with any information or offering memorandum, security purchase agreement, or offer, invitation or recommendation to underwrite, buy, subscribe for, otherwise acquire, or sell any securities or other financial instruments or interests or any other transaction.

Media
Michael Freitag / Jed Repko / Kara Sperry
Joele Frank, Wilkinson Brimmer Katcher
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