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Mithaq Capital has accumulated a majority stake in ailing US-based kids’ apparel retailer Children’s Place,triggering a provision for refinancing a USD 50 mn debt facility. AlRajhi family’s investment arm now holds a 54% stake in the retailer after buying shares last week on the open market, snapping up shares at USD 17.10 a piece, Reuters reports
Gordon Brother Group could provide a part of the refinancing facility: The retailer has inked a non-binding agreement with the liquidation and restructuring firm for a term debt facility worth USD 130 mn that would cover some of the required refinancing, it said in a press release. The loan’s term sheet is expected to be finalized next month.
In context: The share price of the Nasdaq-listed company fell 58% last week to trade at USD 11.30 a piece after un-audited figures showed operational losses in 4Q 2023. Shares pared their losses following Mithaq Capital’s announcement.
IN OTHER M&A NEWS-
PIF-backed Tamimi Markets completes Al Raya takeover, acquiring 100% of the supermarket chain, it said in a press release. Al Raya was majority owned by Levant Capital and it currently operates 51 stores across 20 cities. Information about the size of the transaction wasn’t made public.
ADVISORS-ANB Capital quarterbacked the transaction as Tamimi’s sole financial advisor, andMohanned bin Saud Al-Rasheed in Association with Baker Botts acted as its legal counsel. BNP Paribas acted as sole financial advisor to Al Raya and Eversheds Sutherland acted as legal advisor.
