Children's Place Announces Expansion of Revolving Credit Facility to $445M

The Children’s Place, Inc. (Nasdaq: PLCE), the largest pure-play children’s specialty apparel retailer in North America, today announced the expansion of its revolving credit facility from $350 million to $445 million. The fifth amendment to the Company’s credit agreement also replaces LIBOR as the interest rate benchmark with the SOFR interest rate benchmark, and updates the interest rates to reflect current market terms.

Sheamus Toal, Chief Financial Officer, said, “We are extremely pleased to welcome PNC Bank as a new joint lead arranger, who is committing an additional $95 million toward our revolving credit facility and we are grateful for the support provided by our current banking group. This additional credit availability will significantly strengthen our financial position while also supporting our seasonal working capital needs and investments in the Company’s future growth.”

Under the amended credit agreement, revolving credit borrowings will bear interest at SOFR plus 2.00% or 2.25% per annum, based on the amount of the Company’s average daily excess availability. These rates are subject to downward adjustment in the event that the Company achieves a certain level of EBITDA and based on the amount of the Company’s average daily excess availability. As a SOFR loan, the term loan under the amended credit agreement will bear interest at SOFR plus 2.75% per annum.

Additional information about the fifth amendment to the Company’s credit agreement is contained in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 5, 2023.