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Sycamore, Talbots Say Pension Board Won't Oppose Buyout

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July 20 (Bloomberg) -- Sycamore Partners LLC and Talbots Inc. said the Pension Benefit Guaranty Corp. won’t challenge the private equity firm’s buyout of the retailer, satisfying a condition for the offer.

The companies also removed a financing requirement, Sycamore and Talbots said today in a statement. Under the amendment, Sycamore must now accept shares tendered in the offer even if the parent company hasn’t received proceeds of the financing commitments from its lenders.

Talbots, a women’s clothing retailer based in Hingham, Massachusetts, agreed to be bought by the private equity firm in May for a reduced price of $369 million, including debt. Earlier this week, Sycamore extended the offer expiration by two weeks to July 27. About 80.9 percent of Talbots shares were tendered as of July 13, Sycamore said on July 16.

The PBGC issued a letter to Talbots on July 18 confirming that it will not take action with respect to the acquisition, the companies said in the statement. In order to complete the deal, Talbots needed a letter from the pension board saying that the agency had concluded a review of the company’s retirement plan.

Talbots rose as much as 3.8 percent to $2.73 in extended trading, after closing unchanged at $2.63 in New York. The shares have declined 1.1 percent this year.

To contact the reporter on this story: Lauren Coleman-Lochner in New York at llochner@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net

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