The massive $90 million PIK is due in august
What’s gonna happen???!!??!
Nobody is talking about it
A massive elephant in the room
Managers are rearranging the deck chairs on the titanic
4 replies (most recent on top)
@1gut, Could this be why mid-year inventory was postponed until August?
(🤔There’s just something very strange about the rather sudden rescheduling of mid year inventory.)
Per/Bloomberg, JULY 6 2023.
Sycamore Partners-backed department store chain Belk Inc. told creditors it’s looking to cut costs and expects WEAKER earnings in 2023.
Belk expects its revenue to drop 3% compared to a year earlier. It also estimates that its adjusted earnings before interest, taxes, depreciation and amortization will land at around $230 million, down from an earlier estimate of $240 million.
Belk also has to contend with a significant jump in its debt servicing costs as IT CAN NO LONGER DEFER INTEREST PAYMENTS, a feature known as “payment-in-kind”. Its interest expense is set to DOUBLE to $90 MILLION this year AND Belk faces loan interest payments THIS AUGUST.
Moody’s Investors Service cut the company’s corporate credit ratings to Caa3 in February, citing Belk’s UNSUSTAINABLE DEBT LOAD AND GROWING INTEREST BURDEN.. The retailer has an asset-based revolver that comes due in August 2024, followed by first-lien term loans that mature in 2025, the credit grader said.
@wfo, aren’t you special? Many people would love to know where money’s coming from, but it’s not gonna happen.
Nothing’s gonna happen. They have money. From other sources.