J.Jill, Inc. announced it has obtained the necessary consents from its term loan lenders to implement the previously announced financial restructuring transaction (“Transaction”) on an out of court basis. The Company received consents from lenders holding 97.8% of the Company’s term loans (“Consenting Lenders”) on the terms of the Transaction that are intended to result in a waiver of any past non-compliance with the Company’s credit facilities and provide the company with additional liquidity.

According to a regulatory filing CIT Finance LLC, served as administrative agent and collateral agent.

The Company expects the Transaction to close on or about September 30, 2020, subject to obtaining consent to the Transaction and a waiver of all existing non-compliance with the terms of the Company’s asset-based credit facility (“ABL Facility”) from the requisite lenders under the Company’s ABL Facility, and finalizing the other terms and documentation related to the Transaction. Under the terms of the Transaction, the maturity of certain participating term loan debt will be extended to May 2024, all existing non-compliance with the terms of the Company’s credit facilities will be waived, the Company will be granted a financial covenant holiday under certain participating term loan debt until Q4 2021, and will receive an investment of no less than $15 million in the form of a junior term loan facility. The Transaction provides J.Jill with the financial flexibility to continue to meet its obligations to its vendors in full and continue to execute on its business plan.