rue21 looks to pay initial obligations tied to $125 million exit loan

By Caroline Salls

Pittsburgh, Aug. 7 – rue21, Inc. requested court approval to incur and pay initial obligations related to an up to $125 million exit facility, according to a motion filed Friday with the U.S. Bankruptcy Court for the Western District of Pennsylvania.

The initial obligations include reimbursement of fees and expenses, an alternate transaction fee and indemnification provisions. No specific amounts were provided in the motion.

Bank of America, NA is the sole administrative agent, lead arranger and bookrunner for the facility.

The company said it will seek approval of the facility in connection with confirmation of its Chapter 11 plan.

The rue21 debtors said the exit facility “is critical to the plan and addresses the need to refinance their post-petition asset-based lending facility.”

A hearing is scheduled for Aug. 16.

rue21 is a Warrendale, Pa., specialty retailer focused on teens that filed for bankruptcy on May 15 under Chapter 11 case number 17-22045.

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