TSL Express Daily News

NEW YORK--(BUSINESS WIRE)--Saks Global Enterprises LLC (the “Company”) today shared progress against its previously announced measures to strengthen its balance sheet and support its long-term growth.

The Company has secured $350 million of financing commitments from SLR Credit Solutions (“SLR”) consisting of a $300 million first-in, last-out (FILO) facility for the company and a $50 million secured term loan facility for certain subsidiaries of the Company, providing additional liquidity to support the execution of the Company’s business plan. The FILO facility will be incurred as an incremental facility in connection with the Company’s existing $1.8 billion asset-based lending (ABL) facility. The funding of the commitments under the respective facilities is subject to customary conditions. The transaction is expected to close on or before June 30, 2025.

Marc Metrick, CEO, Saks Global Operating Group said, “As we have always planned, Saks Global is implementing measures to further bolster liquidity and fortify our balance sheet as we continue executing on our transformation strategy and investing in our business. With the financings announced today, the Company will have approximately $700 million in available liquidity on a pro forma basis. Along with synergy realization and business performance exceeding our plans, we are well positioned to continue delivering for all of our stakeholders, including our brand partners.”

Michael Gross, CEO, SLR Capital Partners said: “We’re pleased to support Saks Global and its leadership team as they execute on their strategic plan. This financing reflects our confidence in the company’s platform and long-term growth trajectory.”

Business Momentum and Outlook

The Company continues to see improvements in business performance, with inventory receipt flows improving and synergy realization from integration efforts significantly exceeding plan.

Advisors

BofA Securities, Inc. served as financial advisor to Saks Global in connection with the FILO facility.

Willkie Farr & Gallagher LLP served as legal counsel to Saks Global.

About Saks Global

Saks Global is a combination of world-class luxury retailers, including Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Saks OFF 5TH, as well as a portfolio of prime U.S. real estate holdings and investments. Saks Global is deeply committed to helping luxury consumers discover the most sought-after established and emerging brands from around the world. Powered by data-driven technology and centered on the customer, Saks Global is on a mission to redefine the luxury shopping experience through highly personalized service, with greater opportunities for product discovery across all channels.

About SLR Credit Solutions

SLR Credit Solutions (f/k/a Crystal Financial), a portfolio company of SLR Investment Corp., is a leading provider of direct private credit focused on originating, underwriting, and managing asset-based financings.

Forward-Looking Statements

Certain statements made in this release are forward-looking within the meaning of applicable securities laws, including the Company’s current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments. Often, but not always, forward- looking statements can be identified by the forward-looking terminology such as the words “may,” “will,” “expect,” “believe,” “estimate,” “plan,” “could,” “should,” “would,” “anticipate,” “foresee,” “continue,” “intends,” “trends,” “indications,” “anticipates,” “predicts,” “likely” or “potential” or the negative or other variations of these words or other comparable words or phrases.

Forward-looking statements are based on current estimates and assumptions made by the Company in light of the Company’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors that it believes are appropriate and reasonable in the circumstances. However, there can be no assurance that such estimates and assumptions will prove to be correct. Many factors could cause the Company’s actual results, level of activity, performance, achievements, future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors:

• the possibility that the anticipated synergies and other benefits from the Acquisition will not be realized (partially or at all), or will not be realized within the anticipated time periods;
• the Company’s ability to successfully manage inventory levels;
• increased or new competition;
• changing consumer preferences, demand and fashion trends;
• brand image and reputational risks;
• customer concentration;
• success of the Company’s marketing and advertising programs;
• changes in spending of consumers and lower demand, including as a result of macroeconomic factors such as tariffs and inflation;
• seasonality of business;
• damage to brands and dependence on vendors;
• the Company’s ability to execute retail strategies;
• the possibility that the anticipated benefits of the Company’s partnerships with third parties will not be realized within anticipated time periods;
• reduced flexibility due to restrictive debt covenants;
• future availability of financing and limitations related to changes in the Company’s credit ratings;
• loss of or disruption in centralized distribution centers;
• civil unrest;
• extreme or unseasonable weather conditions or natural disasters;
• international operational risks, including tariffs and political risks;
• fluctuations in the U.S. dollar and other foreign currencies;
• supply disruptions;
• increase in raw material costs;
• insolvency risk of parties with whom the Company does business or their unwillingness to perform their obligations;
• risks related to privacy issues and cyber and other security breaches;
• the Company’s ability to upgrade, maintain and secure its information systems to support its needs and protect against cybersecurity threats;
• loss of intellectual property rights;
• the Company’s ability to make successful acquisitions, investments, expansions and divestitures;
• ability to maintain adequate financial and management processes and controls;
• the Company’s ability to attract and retain quality employees;
• risks related to labor costs and other challenges from a large workforce, including a deterioration in labor relations;
• NMG pension plan funding requirements;
• limits on insurance policies;
• exposure to changes in the real estate market;
• exposure to potential environmental liabilities relating to owned and leased real property;
• loss of flexibility with respect to properties in the real estate joint ventures;
• ability to realize the expected benefits from the real estate joint ventures or to effect a future monetization transaction with each of the real estate joint ventures;
• liabilities associated with lease guarantees and with third parties who have assumed leases from the Company;
• risks related to regulatory liability;
• inability to comply with laws and regulations that impact the Company’s business, which could lead to litigation or regulatory actions against the Company;
• tariffs, duties, border adjustment taxes, trade restrictions, sanctions, quotas and voluntary export restrictions on imported merchandise;
• non-compliance with changing privacy regulatory environment;
• risks of product liability claims and product recalls;
• risks related to tax matters;
• changes in accounting standards and other risks inherent in the Company’s business and/or factors beyond the Company’s control which could have a material adverse effect;
• ability to manage indebtedness obligations and cash flow; and
• the ability of the Company to obtain additional financing on commercially reasonable terms or at all;
• risks related to increasing indebtedness and other contractual obligations with the Company’s strategic partnerships.

These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully.

The purpose of forward-looking statements is to provide the reader with a description of management’s current expectations regarding the Company’s financial performance and may not be appropriate for other purposes; readers should not place undue reliance on forward-looking statements made herein. Furthermore, unless otherwise stated, the forward-looking statements contained in this release are made as of the date of this release, and the Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. The forward-looking statements contained in this release are expressly qualified by this cautionary statement.