At Home Capitalizing on Retail Closures

At Home Group Inc. has closed a new $200 million private placement and completed a series of refinancing transactions to strengthen its balance sheet and position the business to take advantage of opportunities created by recent competitive exits in the sector.

“These transactions further strengthen our financial position and provide At Home with incremental capital to support our growth objectives and execute on our strategic plan,” said Lee Bird, chairman & CEO of At Home. “At Home’s value positioning, unique product assortment and unmatched selection remain highly differentiated in the marketplace. With these transactions, we are able to further invest in our business and strengthen our position as the leading destination for home décor. And with significant runway to add stores, we believe we are well positioned to continue our long track record of double-digit growth in the coming years. We appreciate the support from our financing partners who recognize the value of our business and potential for long-term growth.”

Under the transactions, a subsidiary of the company completed a private placement of $200 million aggregate principal amount of 11.500 percent Senior Secured Notes due 2028, the net proceeds of which were on-lent to the company.

Concurrent with the offering of the New Money Notes, certain holders of the company’s existing 7.125 percent Senior Unsecured Notes due 2029 will exchange their Existing Unsecured Notes for new 7.125 percent/8.625 percent Cash/PIK Toggle Senior Secured Notes due 2028 issued by the company.

The company expects to exchange approximately $447 million of its Existing Unsecured Notes for Exchange Notes in aggregate principal amount of approximately $412 million, representing an exchange of Existing Unsecured Notes for Exchange Notes at 90 percent of par value plus accrued interest.

The New Money Notes and the Exchange Notes were not registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements. The Notes were offered only to qualified institutional buyers in accordance with Rule 144A under the Securities Act.

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