Case Summary: The Children's Place

The Children's Place

$80,000,000 Senior Term Loan

Overview

The Children’s Place is the largest pure-play children’s specialty apparel retailer in North America. The Company designs and sells both at retail and wholesale fashionable, high-quality merchandise predominantly at value prices, primarily under the proprietary “The Children’s Place” and “Gymboree” brand names. As of August 1, 2020, the Company had 824 stores in the United States, Canada and Puerto Rico, online stores at childrensplace.com and gymboree.com, and the Company’s eight international franchise partners had 276 international points of distribution in 19 countries.

Situation

After navigating the immediate impacts of COVID 19, the Company wanted to enhance their financial position and flexibility with incremental liquidity.

Solution

Crystal agented an $80,000,000 Senior Term Loan secured by a first lien position on the Company’s intellectual property and certain other assets and a second lien position in the working capital assets secured by the revolving credit facility.