CHARLOTTE, N.C.--(BUSINESS WIRE)--Belk, Inc. (“Belk” or the “Company”), a privately-owned department store with nearly 300 stores across the Southeastern United States, today announced that it has completed a value-maximizing deleveraging transaction (the “Transaction”) with the Company’s first and second lien lenders and equity sponsor, Sycamore Partners (“Sycamore”). Through the Transaction, Belk has reduced its outstanding debt by more than $950 million, amended its existing asset-based credit facility to extend the maturity date to July 2029, and secured approximately $485 million in new capital, including (i) $275 million of secured term loans and (ii) a $210 million securitization facility secured by revenue streams from the Company’s loyalty credit card program.
The Transaction is the result of Sycamore’s efforts with Belk’s lenders to significantly deleverage the Company’s capital structure, preserve thousands of jobs, and provide the business with additional liquidity to expand national vendor partnerships. This strategic step strengthens the Company’s financial position and further enhances its ability to deliver for its customers and partners.
“Today’s announcement marks a pivotal milestone for Belk as we move into the future with a capital structure that positions our business for sustainable, long-term growth and profitability,” said Don Hendricks, Belk’s Chief Executive Officer. “We are confident that our stronger balance sheet will enable us to build on the momentum and growth we’ve seen in recent quarters, better serve our customers and their communities and be an even stronger partner to our vendors.”
Through this transaction, certain of Belk’s existing lenders, including funds associated with KKR and Hein Park, will have a controlling interest in the business, as the Company continues to execute its strategic plan and drive growth.
Advisors
Kirkland & Ellis LLP served as legal advisor, Lazard Frères & Co. LLC served as investment banker, KKR Capital Markets LLC served as the structuring agent and sole arranger on the card program securitization, and C Street Advisory Group served as strategic communications advisor to Belk.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor, and Evercore served as investment banker to an ad hoc group of first lien term loan lenders.
About Belk
Charlotte-based Belk, Inc., a privately-owned department store, opened its first store in 1888, beginning a legacy of selling great products at great prices, treating customers like family, and giving back to the community. Today, Belk serves customers at nearly 300 Belk stores in 16 Southeastern states, at belk.com and through the mobile app. For over 130 years, Belk has proudly put customers and community at the center of what they do, supporting local charities, organizations, and families when they need it most. For more information visit https://newsroom.belk.com/.
To shop, find your local store at https://www.belk.com/stores/, visit belk.com or download the Belk app in Google Play or Apple Store.
