Lands' End Restructures Debt, Enters New Financial Agreement

TL;DR

**Lands' End just revamped its debt, terminating old agreements and taking on new financial obligations.**

AI Summary

Lands' End, Inc. filed an 8-K on January 3, 2024, reporting significant financial changes effective December 29, 2023. The filing indicates the entry into a new material definitive agreement, the termination of a previous material definitive agreement, and the creation of a direct financial obligation. These actions suggest a restructuring of the company's financial commitments, which could impact its liquidity and future operational flexibility. Investors should monitor the details of these agreements as they could affect Lands' End's debt profile and profitability.

Why It Matters

This filing signals a significant shift in Lands' End's financial structure, potentially impacting its debt load, interest expenses, and overall financial health. Investors need to understand the terms of these new obligations to assess the company's future profitability and risk.

Risk Assessment

Risk Level: medium — The termination of old and creation of new financial obligations introduces uncertainty regarding the company's future financial stability and cost of capital.

Analyst Insight

A smart investor would seek out the full details of the 'Material Definitive Agreement' and 'Direct Financial Obligation' to understand the new terms, interest rates, and covenants, as these will directly impact Lands' End's financial health and future earnings potential.

Key Players & Entities

• LANDS' END, INC. (company) — the registrant filing the 8-K
• December 29, 2023 (date) — date of the earliest event reported
• January 3, 2024 (date) — date the 8-K was filed
• 001-09769 (other) — Commission File Number for Lands' End, Inc.

FAQ

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share LE The Nasdaq Stock Marke
• $260 million — ich provides the Company a term loan of $260 million (the “New Term Loan Facility&#x2

Filing Documents

• le-20231229.htm (8-K) — 63KB
• le-ex4_1.htm (EX-4.1) — 1590KB
• le-ex4_2.htm (EX-4.2) — 394KB
• 0000950170-24-001005.txt ( ) — 2447KB
• le-20231229_pre.xml (EX-101.PRE) — 10KB
• le-20231229_lab.xml (EX-101.LAB) — 13KB
• le-20231229.xsd (EX-101.SCH) — 2KB
• le-20231229_htm.xml (XML) — 5KB

01

Item 1.01 Entry into a Material Definitive Agreement. On December 29, 2023, Lands’ End, Inc. (the “Company”) entered into a term loan credit agreement by and among the Company, Blue Torch Finance LLC., as Administrative Agent and Collateral Agent and the other lender parties thereto (the “Term Loan Credit Agreement”) which provides the Company a term loan of $260 million (the “New Term Loan Facility”), the proceeds of which were used to (i) repay all the indebtedness under the Term Loan Credit Agreement, dated as of September 9, 2020, by and among the Company, the guarantors party thereto, Fortress Credit Corp. (as administrative agent and collateral agent) and the lenders party thereto (the “Prior Term Loan Facility”), and (ii) pay fees and expenses in connection with the financing. Maturity; Amortization and Prepayments The New Term Loan Facility will mature on December 29, 2028, will amortize at a rate equal to 1.25% per quarter, and is subject to mandatory prepayments in an amount equal to a percentage of the Company’s excess cash flows in each fiscal year, ranging from 75% to 0% depending on the Company’s total leverage ratio, and with the proceeds of certain asset sales, casualty events and extraordinary receipts. Voluntary prepayment and certain mandatory prepayments made (i) on or before December 29, 2024 would result in a prepayment premium equal to 3% of the principal amount of the loan prepaid plus a yield maintenance fee, (ii) between December 30, 2024 and December 29, 2025 would result in a prepayment premium equal to 2% of the principal amount of the loan prepaid, (iii) between December 30, 2025 and December 29, 2026, would result in a prepayment premium equal to 1% of the principal amount of the loan prepaid, (iv) between December 30, 2026 and December 29, 2027, would result in a prepayment premium equal to 0.5% of the principal amount of the loan prepaid and (v) ther

02

Item 1.02 Termination of a Material Definitive Agreement. The information described in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

03

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information described in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits Exhibit Number Description 4.1 Term Loan Credit Agreement, dated December 29, 2023, by and among Lands’ End Inc. (as the borrower), the guarantors party thereto, the lenders party thereto, and Blue Torch Finance LLC (as administrative agent and collateral agent) 4.2 Guaranty and Security Agreement, dated December 29, 2023, by and among Lands’ End, Inc., as the Borrower, and the other grantors party thereto and Blue Torch Finance LLC, as Agent 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) The exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K under the Securities Act of 1933, as amended. The Company agrees to furnish supplementally a copy of all omitted exhibits and schedules to the Securities and Exchange Commission upon request.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. LANDS' END, INC. Date: January 3, 2024 By: /s/ Peter L. Gray Name: Peter L. Gray Title: Chief Commercial Officer, Chief Administrative Officer and General Counsel

View Full Filing

View this 8-K filing on SEC EDGAR