Case Study

Financial Advisor to Lenders to Saks Fifth Avenue and its Related Companies

We served as financial advisor to Pathlight Capital LP in its capacity as Administrative Agent and Collateral Agent with respect to its various term loans to Saks and its affiliated companies.

Company

Saks Fifth Avenue

Location

United States / Canada

Industry

Consumer / Retail

Case Study: Financial Advisor to Lenders to Saks Fifth Avenue and its Related Companies

Lender Advisory Saks Fifth Avenue

The Situation

Saks and its related entities operated retail department stores in the United States and Canada and owned substantial real estate holdings in the United States, including the Saks flagship building on Fifth Avenue in New York City. Pathlight provided term loans to Saks in excess of $650 million. We were engaged by Pathlight in 2023 after the company's financial performance deteriorated significantly.

Strategy & Execution

Over a multi-year period, we oversaw multiple restructurings of the term loan credit facilities, each of which was designed to enhance Pathlight's security position, improve its collateral base, and support the company's efforts to pursue its operational and transactional objectives. These efforts involved systematically providing Saks with incremental capital in exchange for enhanced economics and asset coverage. Execution involved our team collaborating closely with the company's management and its lenders.

Outcome

Ultimately, Saks announced that it had entered into a definitive agreement to acquire Neiman Marcus. We supported the consummation of the transaction, including supporting Pathlight in advancing additional capital to the company subsequent to Saks obtaining regulatory approval to complete the transaction. In December 2024, the transaction closed, upon which Pathlight was repaid in full.