World of Jeans & Tops Enters into the First Amendment to Credit Agreement
January 26, 2023 at 05:11 pm
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On January 26, 2023, World of Jeans & Tops entered into the First Amendment to Credit Agreement (the “Amendment”), which amends the Credit Agreement (as amended, the “Agreement”), dated as of January 20, 2022, with Wells Fargo Bank, National Association. The Amendment increases the Company's required Total Funded Debt to EBITDAR ratio for each of the next two fiscal quarters ending January 28, 2023, and April 29, 2023. Section 4.9.(a) of the Credit Agreement is hereby deleted in its entirety, and the following substituted therefor: Total Funded Debt to EBITDAR of Tilly's, Inc. and its consolidated subsidiaries not greater than 4.75 to 1.00 as of the fiscal quarters ending on January 28, 2023 and April 29, 2023, and not greater than 4.00 to 1.00 as of the fiscal quarter ending on July 23, 2023 and each fiscal quarter end thereafter, determined on a rolling four-quarter basis, with "Total Funded Debt" defined as the sum of (i) all obligations for borrowed money, (ii) capital leases, and (iii) annual rent expense from all operating leases multiplied by six (6), and with "EBITDAR" defined as the sum of net income, interest expense, taxes, depreciation, amortization and annual rent expense.” The effective date of this Amendment shall be the date that all of the following conditions in this Section have been satisfied, as determined by Bank and evidenced by Bank's system of record.
Notwithstanding the occurrence of the effective date of this Amendment, Bank shall not be obligated to extend credit under this Amendment or any other Loan Document until all conditions to each extension of credit in the Credit Agreement have been fulfilled to Bank's satisfaction. Approval of Bank Counsel. All legal matters incidental to the effectiveness of this Amendment shall be satisfactory to Bank's counsel.
Tilly's, Inc. is a specialty retailer of casual apparel, footwear, accessories, and hardgoods for young men, young women, boys and girls. The Companyâs stores are located in a variety of retail centers, including malls, lifestyle centers, power centers, community centers, outlet centers, and street-front locations. Customers may also shop online, where it features the same assortment of products as is carried in its stores, supplemented by additional online-only styles. The Company operates over 248 stores in 33 states. The Company's third-party brands include adidas, Champion, Dr. Martens, BDG, Converse, Edikted, Billabong, Crocs, Ethika, Birkenstock, Diamond Supply, Free People, Brixton, Dickies, G-Shock, Herschel Supply Co., HUF, Hydro Flask, Jansport, Levi's and others. It supplements its third-party merchandise assortment with its own proprietary brands across many of its product categories. It sells merchandise over the Internet through its e-commerce Website, www.tillys.com.
TILLY'S, INC. 
