Retailer Seeks Stability with Nexus Capital Management Deal
- Big Lots secures $550 million in bankruptcy financing
- Nexus Capital Management offers $620 million for most of Big Lots’ assets and business operations
- Trading of Big Lots’ shares suspended on NYSE
- Company expects to pay vendors in full for goods and services delivered after bankruptcy filing
- Big Lots plans to reduce store fleet amid tough retail environment
Big Lots has secured $550 million in debtor-in-possession financing and up to an additional $157.5 million in new term loans after entering bankruptcy with a debt load of $556.1 million. The retailer also entered bankruptcy with a stalking horse agreement with Nexus Capital Management, which is offering $620 million for most of Big Lots’ assets and business operations. If no higher or better offers are presented to the court, Nexus and Big Lots expect to close the deal during the fourth quarter of this year. The company plans to use bankruptcy to avoid the path of retail chains like 99 Cents Only Stores and Conn’s, which have had to liquidate in bankruptcy. CEO Bruce Thorn said the funding will allow the bargain-focused retailer to continue normal operations, including paying employees and vendors.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Big Lots’ bankruptcy, debtor-in-possession financing, stalking horse agreement with Nexus Capital Management, and the company’s plans to emerge as a stronger entity. It also discusses the challenges faced by discount chains in the retail environment this year. However, it lacks personal opinions or sensationalism.
Noise Level: 3
Noise Justification: The article provides relevant information about Big Lots’ bankruptcy, its debt-in-possession financing, and the potential acquisition by Nexus Capital Management. It also mentions the challenges faced by discount chains in the current retail environment. However, it does not contain any misleading or irrelevant information, nor does it dive into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: Big Lots’ bankruptcy and potential sale to Nexus Capital Management, impacting retail sector stocks and related companies
Financial Rating Justification: The article discusses Big Lots entering bankruptcy, securing debtor-in-possession financing, and a potential sale to Nexus Capital Management. This affects financial markets as it involves significant amounts of money and impacts the company’s stock listing on NYSE. It also mentions other retailers facing similar challenges in the current economic environment.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text and it’s not the main topic.
www.retaildive.com