Express stock soars after reaching agreement on $140 million in additional financing

Shares of Express Inc.
soared 24% in premarket trading Thursday, after the struggling apparel retailer announced an agreement that will provide it with $140 million in additional financing. The financing deal, reached with Sycamore Partners, as well as Wells Fargo and Bank of America Merrill Lynch, includes a $90 million term loan dur May 2024 and a $50 million delayed draw term loan, which will be repaid after the receipt of a CARES Act tax refund. “We continue to effectively manage our financial liquidity,” said Chief Executive Tim Baxter. “I expect this additional capital will support the Company through the duration of the pandemic, and allow us to continue the important and transformational work of the EXPRESSway Forward strategy.” The stock has tumbled 78.4% over the past 12 months through Wednesday, while the SPDR S&P Retail ETF
has run up 56.8% and the S&P 500
has gained 16.0%.