Totes Completes Out of Court Restructuring

On December 23, 2019, our client, a steering committee of first lien term loan lenders closed a comprehensive out-of-court restructuring with the borrower under the Steering Committee’s pre-restructuring first lien term loan facility, Totes Isotoner, all the other lenders party thereto, the second lien lenders, Wells Fargo, as the agent under Totes’ ABL revolving facility, Cantor Fitzgerald, as the new agent under the amended and restated credit facility and Freeman Spogli and Investcorp, as Totes’ equity sponsors.  Pursuant to the restructuring, 100% of the first lien lenders traded in their loans for (i) 95.5% of Totes’ post-restructuring equity (with 4.5% of the equity going to the second lien lenders in full satisfaction of their claims) and (ii) $50 million last-out first lien loans under an amended and restated term loan facility.  In connection with the restructuring, certain first lien lenders agreed to fund a new money first out $21 million term loan facility and exchange their existing FILO ABL claims for new money first out term loans on a dollar-for -dollar basis.