David's Bridal has been actively negotiating with its lenders over proposals to restructure its debt load to reduce leverage on the wedding apparel retailer, according to an Oct. 22 report from Reorg emailed to Retail Dive. As of Friday, four days after the retailer skipped a debt payment, two proposals were floating, one from the company and a counterproposal from an ad hoc group of term loan lenders, according to Reorg.
While the proposals differ on interest rates and terms, both include a debt-for-equity swap through an $80 million rights offering, a new $80 million loan and repayment on $80 million of an existing term loan from the rights offering, Reorg reported.. . . more