Loyalty Ventures Inc.: going-concern / distress — Loyalty Ventures files Chapter 11, stalking horse sale of AIR MILES for $160M

Loyalty Ventures Inc.

Filed Chapter 11 in U.S. Bankruptcy Court; LoyaltyOne seeks CCAA protection in Canada.
Stalking horse deal with Bank of Montreal: $160M cash + assumed liabilities for AIR MILES; $3M break-up fee.
$70M DIP facility from BMO to fund LoyaltyOne during CCAA proceedings; interest at Base Rate +6%.
Credit Agreement debt accelerated: $32M revolver, $161.9M Term A, $462.5M Term B; payments stayed.
Company expects delisting from Nasdaq; NOL motion filed to protect tax attributes.

item 1.01 item 1.03 item 2.04 item 3.01 item 5.02 item 7.01 item 9.01

Executive movements

Machine-extracted from this filing. Every card cites the SEC source. See all recent executive movements.

Departed

Claudia Mennen

Chief Executive Officer

Loyalty Ventures Inc.

Effective: 2023-06-30
Filed: March 10, 2023, 6:59 PM ET

Ms. Mennen’s employment agreement shall terminate by mutual consent on June 30, 2023

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Loyalty Ventures Inc. faced acceleration on credit facility of approximately $32,000,000 aggregate principal amount of the Revolving Loans, approximately $161,875,000 aggregate princi with Bank of America, N.A..

Instrument: credit facility
Principal: approximately $32,000,000 aggregate principal amount of the Revolving Loans, approximately $161,875,000 aggregate princi
Counterparty: Bank of America, N.A.
Event: acceleration

Exact text from the filing

The commencement of the Chapter 11 Cases on the Petition Date as described in Item 1.03 of this Form 8-K constituted an event of default under the Credit Agreement. The Credit Agreement provides that as a result of the Chapter 11 Cases, the obligations thereunder, including principal and interest, are immediately due and payable including the approximately $32,000,000 aggregate principal amount of the Revolving Loans under the Credit Agreement, the approximately $161,875,000 aggregate principal amount of the Term A Loans under the Credit Agreement, and the approximately $462,500,000 aggregate principal amount of the Term B Loans under the Credit Agreement, outstanding thereunder.

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Distress & Bankruptcy SEC 8-K Item 1.03 confidence 0.9

Loyalty Ventures Inc. entered chapter 11 in United States Bankruptcy Court for the Southern District of Texas (petition 2023-03-10).

Proceeding: chapter 11
Court: United States Bankruptcy Court for the Southern District of Texas
Petition: 2023-03-10

Exact text from the filing

on the Petition Date, the Debtors filed the Chapter 11 Cases in the Bankruptcy Court. The Debtors are requesting joint administration of the Chapter 11 Cases under the case number 23-90111 (CML).

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Executive change SEC 8-K Item 5.02 confidence 0.95

Claudia Mennen was terminated as Chief Executive Officer at Loyalty Ventures Inc..

Action: terminated
Role: Chief Executive Officer

Exact text from the filing

Ms. Mennen’s employment agreement shall terminate by mutual consent on June 30, 2023

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41 debt financings filed in the last 30 days. Browse all debt financings →

Source: SEC EDGAR

accession 0001870997-23-000010

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