Vince gets $85 million senior secured revolving credit facility

By Mary-Katherine Stinson

Lexington, Ky., June 26 – Vince Holding Corp.’s wholly owned indirect subsidiary Vince LLC signed an $85 million senior secured asset-based revolving credit facility on June 23 with Bank of America, NA as agent and BofA Securities, Inc. as sole lead arranger and sole bookrunner, according to an 8-K filing with the Securities and Exchange Commission.

The revolving facility provides a line of credit up to the lesser of the borrowing base and $85 million with a $10 million letter-of-credit sublimit. The company is also permitted to request an increase in total commitments under the revolving facility of up to $15 million subject to customary terms and conditions.

The facility matures on the earlier of June 23, 2028 and 91 days prior to the earliest maturity date of any material debt, including the subordinated debt under the company’s third-lien credit agreement dated Dec. 11, 2020.

Loans will bear interest at SOFR with applicable margins subject to a pricing grid based on an average daily excess availability calculation. The applicable margins are 200 basis points when the average daily excess availability is greater than 66.7% of the loan cap, 225 bps when it is between 33.3% and 66.7% of the loan cap and 250 bps when it is less than 33.3% of the loan cap.

The facility contains a financial covenant always requiring excess availability to be no less than the greater of 10% of the loan cap in effect and $7.5 million.

All obligations under the new facility are guaranteed by the company and Vince Intermediate Holding, LLC and any of the company’s future subsidiaries.

All outstanding amounts under the company’s existing $70 million senior secured revolving credit facility with Citizens Bank, NA were fully repaid and the facility was terminated.

On June 23 the company also entered into a fourth amendment to its $20 million third-lien credit agreement to extend its maturity date to the earlier of Sept. 30, 2028 and 91 days prior to the earliest maturity date of any material debt other than the revolving facility.

The credit agreement was originally signed on Dec. 11, 2020 and last amended on April 21, 2023.

The amendment also changed certain terms and conditions to conform to those in the new revolving credit facility.

SK Financial Services, LLC is the administrative agent and collateral agent for the third-lien agreement.

Vince is a clothing company headquartered in New York City.

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