Filene’s Basement successor secures $40 million facility to pay claims

By Caroline Salls

Pittsburgh, Dec. 31 – Syms Corp. and Filene’s Basement successor Trinity Place Holdings Inc. requested court approval of a $40 million loan facility from Sterling National Bank and Israel Discount Bank of New York, according to a news release.

The facility will be secured by Trinity’s properties located at 42 Trinity Place and 67 Greenwich Street in New York.

Proceeds from the loan will be used to pay for or reserve all remaining claims and to make strategic investments in the company’s remaining assets and potential new opportunities.

Once the claims are paid for or reserved to the satisfaction of the court, Trinity said it will have substantially fulfilled its obligations under the Syms and Filene’s Basement plan for reorganization.

Trinity said proceeds from the loan will also be used for further predevelopment work on the 42 Trinity Place and 67 Greenwich Street holdings.

According to the release, significant interest in the development of the property led the company to hire Eastdil Secured to proceed with a formal and organized process to help evaluate the most appropriate risk-adjusted path to value maximization for shareholders.

“This new loan facility provided by Sterling National Bank and Israel Discount Bank of New York bolsters Trinity Place Holdings’ growth plans as a new business,” Trinity president and chief executive officer Matthew Messinger said in the release.

“We will fulfill the obligations under the plan as promised and take key steps forward to create additional value for our stakeholders.

“The loan also supports our predevelopment work in Paramus, N.J., Westbury, N.Y., and West Palm Beach, Fla.”

The facility carries a two-year term, with an option for a six-month extension if no default has occurred.

Interest will be the greater of the Wall Street Journal Prime rate plus 125 basis points and 4½%.

The company said the facility also provides for up to an additional $10 million of proceeds to be made available subject to specified conditions and approvals.

The motion filed with the court to approve the loan facility also seeks approval of a charter amendment to protect Trinity’s net operating losses as a company asset.

Syms, a Secaucus, N.J.-based off-price clothing retailer, filed for bankruptcy on Nov. 2, 2011 along with wholly owned subsidiary Filene’s Basement. The companies emerged from bankruptcy on Sept. 14, 2012.

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