JOANN Completes Refinancing of First Lien Term Loan

Rhea-AI Summary

JOANN Inc. (NASDAQ: JOAN) has successfully refinanced its existing first lien term loan facility, now totaling $675 million, to extend debt maturities and lower borrowing costs. The new facility matures on July 7, 2028, with an applicable rate reduced by 25 basis points to LIBOR plus 4.75%, and a LIBOR floor decreased to 0.75%. CFO Matt Susz highlighted the refinancing's strong demand and its potential to enhance ongoing growth investments.

Positive

• Successfully refinanced $675 million first lien term loan, maturing July 7, 2028.
• Lowered borrowing costs by reducing applicable rate by 25 basis points to LIBOR plus 4.75%.
• Reduced LIBOR floor by 25 basis points to 0.75%, enhancing financial flexibility.

Negative

• None.

HUDSON, Ohio, July 08, 2021 (GLOBE NEWSWIRE) -- JOANN Inc. (NASDAQ: JOAN) (“JOANN”), the nation’s category leader in sewing and one of the fastest growing competitors in the arts and crafts category, announced that it has successfully completed the refinancing of its existing covenant-lite first lien term loan facility due October 2023. The impact of the new $675 million covenant-lite first lien term loan facility is leverage neutral for JOANN as net proceeds will be used to fully repay existing borrowings under the prior first lien term loan facility, with the balance reducing the amount borrowed on its existing asset-based revolving credit facility. The new first lien term loan facility matures on July 7, 2028 and lowers the applicable rate by 25 basis points to LIBOR plus 4.75%. The revised pricing terms also reduce the LIBOR floor by 25 basis points to 0.75%.

“Our refinancing strategy extends our debt maturities and lowers our overall borrowing costs,” stated Matt Susz, Chief Financial Officer of JOANN. “The new term loan received strong demand, and the terms also strengthen our ability to support ongoing investments in our growth strategies,” said Susz.

Concurrent to this announcement, JOANN has filed an 8-K which contains additional details on the revised credit agreement and can be accessed in the investor relations section of our website.

About JOANN:

For more than 75 years, JOANN has inspired creativity in the hearts, hands, and minds of its customers. From a single storefront in Cleveland, Ohio, the nation’s category leader in sewing and fabrics and one of the fastest growing competitors in the arts and crafts industry has grown to include 855 stores across 49 states and robust e-commerce business. With the goal of helping every customer find their creative Happy Place, JOANN serves as a convenient single source for all of the supplies, guidance, and inspiration needed to achieve any project or passion.

Investor Relations Contacts:
Ajay Jain
Ajay.Jain@joann.com
330-463-8585

Renee Jefferson
Renee.Jefferson@joann.com
330-463-6961

Corporate Communications:
Amanda Hayes
amanda.hayes@joann.com
330-463-6961

FAQ

What was the purpose of JOANN's refinancing announcement on July 8, 2021?

The refinancing was aimed at extending debt maturities and lowering overall borrowing costs.

What are the new terms of JOANN's first lien term loan facility?

The new facility totals $675 million, matures on July 7, 2028, and has an applicable rate of LIBOR plus 4.75%.

How does the refinancing affect JOANN's financial leverage?

The refinancing is leverage neutral as net proceeds will fully repay existing borrowings.

What does the CFO of JOANN say about the refinancing?

CFO Matt Susz indicated strong demand for the new term loan and its role in supporting growth investments.