Vince Holding reports receipt of $30M rights offering commitment letter
Vince Holding announced that on May 18, the company received a Rights Offering Commitment Letter from Sun Capital Partners V, L.P. that provides the company with an amount equal to $30M of cash proceeds in the event that the company conducts a rights offering of its common stock to its stockholders, subject to certain terms and conditions. Brendan Hoffman, CEO, commented, "We are pleased to have received this Rights Offering Commitment Letter from Sun Fund V, and appreciate their continued support. The proceeds from a potential offering would enhance our capital structure and provide additional cash for operations, enabling us to continue executing our strategic plan." Sun Fund V will receive terms and conditions substantially in the same form as the investment agreement, dated March 15, 2016, by and among Sun Cardinal, LLC, SCSF Cardinal, LLC and the Company, with any modifications thereto as may be mutually agreed between Sun Fund V and the Company, for providing the Contribution Obligation. There will be no fee paid to Sun Fund V by the Company relating to the Contribution Obligation. Sun Fund V's obligations are subject to certain terms and conditions, as detailed fully in the Rights Offering Commitment Letter dated May 18, 2017, including but not limited to the Company entering into an amendment to its existing senior secured term loan facility that is acceptable to Sun Fund V in its sole discretion, and no default or event of default having occurred under the Company's senior secured term loan facility or revolving credit facility, unless promptly cured or reasonably expected to be promptly cured by the Company. Sun Fund V's obligations terminate upon the earliest to occur of (A) the consummation of the Rights Offering whereby the Company receives proceeds equal to or exceeding $30.0 million, (B) 11:59 p.m. New York City time on June 30, 2017 if the Rights Offering has not commenced by such time, which date to be extended by 45 days in the event the Company's registration statement relating to the Rights Offering is reviewed by the SEC, (C) 11:59 p.m. New York City time on August 1, 2017, and (D) the date Sun Fund V, or its affiliates, fund the Contribution Obligation.