Press release:听CHARLOTTE, N.C.–()–Belk, Inc. (鈥淏elk鈥 or the 鈥淐ompany鈥), a privately-owned department store with nearly 300 stores across the Southeastern United States, today announced that it has completed a value-maximizing deleveraging transaction (the 鈥淭ransaction鈥) with the Company鈥檚 first and second lien lenders and equity sponsor, Sycamore Partners (鈥淪ycamore鈥). Through the Transaction, Belk has reduced its outstanding debt by more than $950 million, amended its existing asset-based credit facility to extend the maturity date to July 2029, and secured approximately $485 million in new capital, including (i) $275 million of secured term loans and (ii) a $210 million securitization facility secured by revenue streams from the Company鈥檚 loyalty credit card program.
The Transaction is the result of Sycamore鈥檚 efforts with Belk鈥檚 lenders to significantly deleverage the Company鈥檚 capital structure, preserve thousands of jobs, and provide the business with additional liquidity to expand national vendor partnerships. This strategic step strengthens the Company鈥檚 financial position and further enhances its ability to deliver for its customers and partners.
鈥淭oday鈥檚 announcement marks a pivotal milestone for Belk as we move into the future with a capital structure that positions our business for sustainable, long-term growth and profitability,鈥 said Don Hendricks, Belk鈥檚 Chief Executive Officer. 鈥淲e are confident that our stronger balance sheet will enable us to build on the momentum and growth we鈥檝e seen in recent quarters, better serve our customers and their communities and be an even stronger partner to our vendors.鈥
Through this transaction, certain of Belk鈥檚 existing lenders, including funds associated with KKR and Hein Park, will have a controlling interest in the business, as the Company continues to execute its strategic plan and drive growth.
Advisors
Kirkland & Ellis LLP served as legal advisor, Lazard Fr猫res & Co. LLC served as investment banker, KKR Capital Markets LLC served as the structuring agent and sole arranger on the card program securitization, and C Street Advisory Group served as strategic communications advisor to Belk.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor, and Evercore served as investment banker to an ad hoc group of first lien term loan lenders.

