Filene’s Basement successor obtains approval of $40 million facility

By Caroline Salls

Pittsburgh, Jan. 22 – Syms Corp. and Filene’s Basement, LLC successor Trinity Place Holdings, Inc. received court approval to enter a $40 million loan facility from Sterling National Bank and Israeli Discount Bank of New York, according to an 8-K filed Thursday with the Securities and Exchange Commission.

As previously reported, 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.

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 4˝%.

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.

Trinity said it also received court approval to develop, sell or transfer Syms-owned real estate under the companies’ Chapter 11 plan, preserve net operating losses and confirm that no mortgage recording or other taxes will be due.

The company said the net operating losses will be preserved through restrictions on transfers of stock and stock ownership.

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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