Vince Holding Corp. Announces Completion of Third Lien Credit Facility

About this update from Vince Holding Corp.

[{"type":"text","content":"\nProvides Preliminary Sales and Gross Margin for the Third Quarter Fiscal 2020\n\nDelays Reporting of Third Quarter 2020 Financial Results\n\n NEW YORK--(BUSINESS WIRE)--\nVince Holding Corp. (NYSE: VNCE), a leading global contemporary group (“Vince” or the “Company”), announced that it has closed its Third Lien Credit Facility resulting in $42.3 million in excess availability under its Revolving Credit Facility. The Company also announced that its earnings release for the third quarter ended October 31, 2020, previously scheduled for after-market-close today, has been postponed to December 21, 2020. The Company plans to host a conference call at 4:30 p.m. ET that same day.\n\nPreliminary highlights for the third quarter ended October 31, 2020:\n\n\nNet sales decreased 34.0% to $69.0 million as compared to $104.5 million in the same period last year.\n\n\nGross margin rate was 45.9% compared to 48.8% in the same period last year.\n\n\nOn December 11, 2020 the Company closed the Third Lien Credit Facility resulting in excess availability of $42.3 million.\n\n\nDavid Stefko, Interim Chief Executive Officer and Chief Financial Officer, commented, “The third quarter experienced sequential improvement in direct-to-consumer sales and gross margin, which continued into the fourth quarter as we entered the holiday season. At the same time, we continued to tightly manage our expenses. While we expect a continued recovery in our business, we successfully closed the Third Lien Credit Facility as well as completed amendments to our existing Revolving and Term Loan Credit Facilities. As we continue to navigate the near term headwinds resulting from COVID, these steps enhanced our liquidity position to support the continued execution of our strategies. We have been very pleased to see continued market share gains in our Vince brand and look forward to the continued execution of our multi-pronged growth strategy. For Rebecca Taylor, we remain encouraged by the opportunity to replicate the Vince recovery and growth playbook. We look forward to providing more detail on our earnings call.”\n\nFinancing\n\nOn December 11, 2020, the Company entered into a $20 million Third Lien Credit Facility with SK Financial Services, LLC (“SK Financial”). Interest and fees under the Third Lien Credit Facility are payable in kind. Proceeds from this facility we...

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