UBS sues to terminate Finish Line's acquisition facility for Genesco

By Lisa Kerner

Charlotte, N.C., Nov. 16 - The Finish Line, Inc. and Genesco, Inc. were named as defendants in a complaint for declaratory relief filed by UBS Securities LLC and UBS Loan Finance LLC in the U.S. District Court for the Southern District of New York.

UBS is seeking a declaration from the court that its commitment letter with the Finish Line for financing its merger with Genesco is void and/or may be terminated by UBS. The commitment letter expires on April 30.

UBS believes the Finish Line will not be able to provide, prior to April 30, a valid solvency certificate, which is a condition of the closing, according to a form 8-K filing with the Securities and Exchange Commission.

It was previously reported that UBS extended the termination date of the commitment letter to April 30 from Dec. 31.

In addition, Genesco filed a lawsuit on Sept. 21 in the Chancery Court in Nashville asking the court to require the Finish Line to consummate its merger with Genesco without further delays by the company or UBS.

On Sept. 17, Genesco shareholders approved the June 18 merger agreement that gives them $54.50 in cash, without interest, for each share of Genesco common stock they own. The transaction, valued at an estimated $1.5 billion, is slated to close in the fall. Genesco's Nashville operations will be maintained and the company will become a subsidiary of the Finish Line, an Indianapolis-based specialty retailer.

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