Deals
PE Firms Crescent, Ares Take Over Savers Thrift Chain in Restructuring
- Retailer restructures balance sheet with new money commitment
- Agreement with creditors cuts debt load by about 40 percent
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Savers LLC, the biggest for-profit thrift-store chain in the U.S., reached a restructuring agreement that cuts its debt load by 40 percent and hands over the keys to Ares Management Corp. and Crescent Capital Group LP.
The company’s board of directors approved the out-of-court restructuring, which includes refinancing a $700 million first-lien loan and lowering the retailer’s interest costs, according to a statement seen by Bloomberg. The deal pays the retailer’s existing term loan holders in full, while holders of its senior notes swapped their debt for equity in the reorganized company, according to the statement.