SLR Credit Solutions Agents Term Loan for The Children’s Place

Key Terms

senior secured term loan financial

A senior secured term loan is a type of borrowing where a company borrows money and promises to pay it back over a fixed period, with the loan secured by the company's assets as collateral. Because it is "senior," it has priority over other debts if the company faces financial trouble, and being "secured" means lenders have a claim on specific assets. For investors, this makes the loan a safer and more predictable investment compared to unsecured or subordinate debts.

revolving line of credit financial

A revolving line of credit is a flexible borrowing arrangement that allows a person or business to access funds up to a set limit whenever needed, much like a prepaid card. As money is repaid, it becomes available to borrow again, making it a convenient way to manage cash flow or cover ongoing expenses. Investors pay attention to it because it reflects a company’s ability to access quick funds and manage financial flexibility.

omni-channel technical

Omni-channel is a business approach that connects all ways a customer can interact or buy—such as websites, mobile apps, physical stores, social media and call centers—so the experience feels seamless no matter which path they choose. For investors, omni-channel matters because it can increase sales, customer loyalty and operational efficiency by making it easier to buy and by collecting better data on behavior; think of it as a coordinated orchestra where every instrument helps sell more smoothly and predictably.

asset-based financings financial

Asset-based financings are loans or credit lines secured by a company’s tangible assets—such as cash, inventory, equipment or customer invoices—used like a pawned item to get money now. Investors care because these deals can boost a company’s cash and keep operations running without selling ownership, but they also increase leverage and can limit future borrowing; if a business struggles, lenders can seize the pledged assets, raising risk.

BOSTON--(BUSINESS WIRE)-- SLR Credit Solutions (“SLR CS”) announced the closing of a $100 million senior secured term loan for The Children’s Place (the “Company”) (NASDAQ: PLCE), one of the only pure-play children’s specialty apparel retailers in North America. The term loan was made in concert with a $350 million revolving line of credit from Wells Fargo. The transaction further strengthens the Company’s liquidity position and supports its long-term strategic priorities.

Proceeds from the transaction were used to repay borrowings under the Company’s revolving credit facility and provide liquidity to support future growth.

“This financing marks an important milestone in our ongoing efforts to strengthen our balance sheet and position the Company for sustainable growth,” said John Szczpanski, CFO of The Children’s Place. “SLR Credit Solutions understands the complexities of our business and was a great financing partner back in 2020. We look forward to resuming the relationship.”

Erica Galano, a Principal at SLR Capital Partners, commented, “We are excited to once again support The Children’s Place through this financing. The Company’s iconic brands, strong market position, and clear strategic plan give us confidence in its long-term prospects.”

About The Children’s Place

The Children’s Place is one of the only pure-play children’s specialty retailers in North America with an omni-channel portfolio of brands and an industry-leading digital-first model. Its global retail and wholesale network includes two digital storefronts, 499 stores in North America, wholesale marketplaces and distribution in 12 countries through nine international franchise and wholesale partners. The Children’s Place designs, contracts to manufacture, and sells fashionable, high-quality, head-to-toe outfits predominantly at value prices, primarily under its proprietary brands: “The Children’s Place”, “Gymboree”, “Sugar & Jade”, and “PJ Place”. For more information, visit www.childrensplace.com and www.gymboree.com.

About SLR Credit Solutions

SLR Credit Solutions, a portfolio company of SLR Investment Corp., is a leading provider of direct private credit focused on originating, underwriting, and managing asset-based financings from $25 - $350 million to middle-market companies. For more information, please visit www.slrcreditsolutions.com.

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THE CHILDREN’S PLACE, INC., CONTACT

John Szczpanski, CFO

jszczpanski@childrensplace.com

SLR CREDIT SOLUTIONS CONTACT

Erica Galano, Principal

egalano@slrcp.com

Source: SLR Credit Solutions