September 28, 2016 9:30 PM ET

Specialty Retail

Company Overview of Claire's Stores Inc.

Company Overview

Claire’s Stores, Inc. operates as a specialty retailer of fashionable jewelry and accessories for young women, teens, tweens, and kids. It sells jewelry products, including earrings, necklaces, bracelets, body jewelry, and rings, as well as offers ear piercing services. The company also sells accessories comprising hair goods; beauty products; room decor; personal, fashion, and seasonal accessories, including phone cases, jewelry holders, stationery, key rings, attitude glasses, headwear, legwear, arm wear, and sunglasses; and handbags and small leather goods. It operates stores under the Claire’s and Icing brand names. As of January 30, 2016, the company operated 2,867 stores, including 1,7...

3 SW 129th Avenue

Pembroke Pines, FL 33027

United States

Founded in 1961

6,335 Employees

Phone:

954-433-3900

Fax:

954-433-3999

Key Executives for Claire's Stores Inc.

Chief Executive Officer, Director and Member of Audit Committee
Age: 62
Executive Vice President and Chief Merchandise Officer
Executive Vice President of Planning Allocation and Supply Chain for North America
Senior Vice President of Stores
Senior Vice President of Global Franchise
Compensation as of Fiscal Year 2016.

Claire's Stores Inc. Key Developments

Claire's Stores, Inc. Announces the Payment in Full of Interest Due September 15, 2016 on its Senior Secured Notes

Claire's Stores Inc. announced the payment in full of interest due September 15, 2016 on its 9.0% Senior Secured First Lien Notes due 2019, 6.125% Senior Secured First Lien Notes due 2020 and 8.875% Senior Secured Second Lien Notes due 2019 (the "Second Lien Notes" and collectively, the "Secured Notes"). In addition, the company announced the closing of its previously announced private offer to exchange (the "Exchange Offer"), and the related refinancing of its U.S. revolving credit facility. The Exchange Offer to holders of the Company's Second Lien Notes, 7.750% Senior Notes due 2020 (the "Unsecured Notes") and 10.500% Senior Subordinated Notes due 2017 (the "Subordinated Notes" and together with the Second Lien Notes and Unsecured Notes, the "Notes") was made pursuant to a confidential offer to exchange statement dated August 12, 2016, as amended on August 29, 2016, and a related letter of transmittal. The company had delayed payment of interest on the Secured Notes pending completion of the Exchange Offer and a related amendment and restatement of its Europe credit facility. On September 20, 2016, Claire's Stores accepted approximately $331.7 million aggregate principal amount of Notes tendered, consisting of approximately $227.7 million aggregate principal amount of Second Lien Notes, approximately $103.3 million aggregate principal amount of Unsecured Notes and approximately $0.7 million aggregate principal amount of Subordinated Notes, in exchange for approximately $117.3 million aggregate principal amount of new five-year term loans of the Company and certain of its subsidiaries, consisting of approximately $20.4 million aggregate principal amount of 9.00% senior secured term loans due 2021 of the Company and its domestic subsidiaries ("Claire's Stores Term Loans"), approximately $66.3 million aggregate principal amount of 9.00% senior secured term loans due 2021 of CLSIP LLC, an indirect wholly-owned subsidiary of the Company ("CLSIP Term Loans"), and approximately $30.6 million aggregate principal amount of 9.00% senior term loans due 2021 of Claire's (Gibraltar) Holdings Limited ("Claire's Gibraltar"), an indirect wholly-owned subsidiary of Claire's Stores ("Claire's Gibraltar Term Loans" and collectively with the Claire's Stores Term Loans and the CLSIP Term Loans, the "Term Loans").

Claire's Stores, Inc. Announces Europe Credit Facility Refinancing

Claire's Stores Inc. announced an agreement to refinance the Multicurrency Revolving Facility Agreement among Claire's (Gibraltar) Holdings Limited, certain of its operating subsidiaries, and HSBC Bank PLC, and the expiration and results of its previously announced private offer to exchange. The Exchange Offer to holders of the company's 8.875% Senior Secured Second Lien Notes due 2019, 7.750% Senior Notes due 2020 and 10.500% Senior Subordinated Notes due 2017 was made pursuant to a confidential offer to exchange statement dated August 12, 2016, as amended on August 29, 2016, and a related letter of transmittal. Claire's (Gibraltar) Intermediate Holdings Limited and the operating subsidiaries party to the Europe Credit Facility have entered into an amendment and restatement thereof with HSBC PLC, effective September 20, 2016. Claire's Gibraltar is not a guarantor or obligor of the Europe Credit Facility Amendment and Restatement. The Europe Credit Facility Amendment and Restatement is secured by the equity interests in Claire's Intermediate Gibraltar and by equity interests in its direct and indirect subsidiaries and certain of their respective assets. The Europe Credit Facility Amendment and Restatement permits certain distributions of cash to the Company, amends certain of the covenants and provides for security to secure the obligations of Claire's Intermediate Gibraltar and the operating subsidiaries to HSBC PLC. The Europe Credit Facility Amendment and Restatement has the same maturity date as the Europe Credit Facility had, but requires a paydown to zero by December 31, 2016 and no borrowings are permitted thereafter unless certain conditions are met, some of which are to be determined by HSBC PLC.

Claire's Stores, Inc. Announces Results of Private Offering of Notes

Claire's Stores Inc. (the "company") announced the expiration and results of its previously announced private offer to exchange (the "Exchange Offer").  The Exchange Offer to holders of the company's 8.875% Senior Secured Second Lien Notes due 2019 ("Second Lien Notes"), 7.750% Senior Notes due 2020 ("Unsecured Notes") and 10.500% Senior Subordinated Notes due 2017 ("Subordinated Notes" and together with the Second Lien Notes and Unsecured Notes, the "Notes") was made pursuant to a confidential offer to exchange statement dated August 12, 2016, as amended on August 29, 2016, and a related letter of transmittal. The Exchange Offer expired at one minute after 11:59 p.m. on September 19, 2016 (the "Expiration Time"). As of the Expiration Time, approximately $332.9 million aggregate principal amount of Notes had been tendered, including approximately $228.9 million aggregate principal amount of Second Lien Notes, approximately $103.3 million aggregate principal amount of Unsecured Notes and approximately $0.8 million aggregate principal amount of Subordinated Notes. The Exchange Offer was not fully subscribed. As previously agreed, certain funds managed by affiliates of Apollo Global Management, LLC (the "Apollo Funds") and Claire's Inc., the parent of Claire's Stores ("Claire's Inc." and together with the Apollo Funds, the "Affiliated Holders"), will effect a similar exchange (the "Affiliated Holder Exchange") of approximately $183.6 million aggregate principal amount of Claire's Stores' 10.500% PIK Senior Subordinated Notes due 2017 ("PIK Notes") held by the Apollo Funds and approximately $58.7 million aggregate principal amount of Subordinated Notes held by Claire's Inc.  All of the conditions to the Exchange Offer, including the requirement that the Exchange Offer, together with the Affiliated Holder Exchange, result in the tender of at least $400.0 million aggregate principal amount of Notes or PIK Notes, are expected to be satisfied or waived. Accordingly, settlement of the Exchange Offer and the Affiliated Holder Exchange is expected to occur promptly. Upon completion of the Exchange Offer and the Affiliated Holder Exchange, the company's outstanding debt will be reduced by approximately $396 million, debt maturities will be extended, and the company estimates it will realize annual cash interest savings of approximately $24 million.

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