Children's Place surges on $90 mln new loan deal with Mithaq Capital

Children's Place

17/04/2024 14:51

(Updates)
    ** Shares of apparel retailer Children's Place  PLCE.O  up
as much as 34.7% at $9.58 in early trading 
        ** Stock snaps streak of four sessions of losses, headed
for best day since Feb. 15
  
    ** Co announces $90 mln new unsecured financing agreement
with its majority shareholder Mithaq Capital, to be funded no
later than April 19
    ** Says it intends to use proceeds of the loan to repay an
existing $50 mln term loan under amended, restated credit
agreement dated May 9, 2019
    ** Adds that Saudi investment firm's new term loan matures
on April 16, 2027, and provides for a "significantly lower
interest rate than the Proposed Term Loan"
        ** Including the new loan, PLCE has received $168.6
million in funding from Mithaq since February
    ** Up to last close, PLCE fell nearly 69% YTD
    

 (Reporting by Anuja Bharat Mistry in Bengaluru)
 ((AnujaBharat.Mistry@thomsonreuters.com))