Enhances ability to pursue extreme
bargain deals and unmistakable value for consumers as part
of its five key actions
COLUMBUS, Ohio, April 18,
2024 /PRNewswire/ -- Big Lots, Inc. (NYSE: BIG),
America's Discount Home Store, announced today it has increased its
borrowing capacity by up to $200
million with a new "first in, last out" term loan facility
(the "FILO Term Loan Facility") through 1903P Loan Agent, LLC, an affiliate of Gordon Brothers
Capital. The FILO Term Loan Facility significantly enhances the
Company's liquidity position and is incremental to the borrowing
capacity within the Company's current $900
million asset-based revolving loan facility ("ABL").
Big Lots achieved significant sequential improvement in its
results during 2023 and, as reported on its March 7, 2024 earnings call, expects further
improvements during 2024. On its March
7 earnings call, Big Lots also indicated that it was
continuing to evaluate additional actions to bolster its
liquidity.
"We remain fully committed to improving our results and
returning the Company to health and prosperity," said Jonathan Ramsden, chief financial and
administrative officer of Big Lots. "The financing announced today
gives us additional flexibility as we continue our focus on
delivering extreme bargains and unmistakable value to our
customers. We are confident that our five key actions will drive
significant improvement in sales and gross margin in the coming
quarters."
Big Lots has identified five key actions to reclaim its bargain
heritage, which include owning bargains and closeouts and
communicating unmistakable value. Through its extreme value
sourcing, Big Lots is focused on becoming the premier partner for
closeouts and liquidations, growing bargain offerings to 75% of
sales, and creating an annual pipeline of closeout deals worth more
than $1 billion at original retail
value across furniture, décor, and pantry essentials.
The Company continues to aggressively manage both capital and
expenses and remains on track to realize at least $200 million in profitability improvements
identified through its Project Springboard initiative. Project
Springboard was launched in spring 2023 with an external consulting
firm whose engagement is now substantially complete.
Citigroup Global Markets, Inc. acted as the exclusive financial
advisor to the Company on the FILO Term Loan Facility. PNC Bank
remains the Company's ABL lead. More details about the FILO Term
Loan Facility will be included in a forthcoming 8-K filing with the
Securities and Exchange Commission.
About Big Lots
Headquartered in Columbus,
Ohio, Big Lots, Inc. (NYSE: BIG) is America's Discount Home
Store, operating more than 1,300 stores in 48 states, as well as an
ecommerce store with expanded fulfillment and delivery
capabilities. The Company's mission is to help customers "Live Big
and Save Lots" by offering bargains to brag about on everything for
their home, including furniture, décor, pantry essentials,
kitchenware, pet supplies, and more. For more information about the
Company or to find the store nearest you, visit biglots.com.
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SOURCE Big Lots, Inc.