Torrid Holdings extends credit facility maturity to 2030 with Bank of America

Published 04/08/2025, 13:36
Torrid Holdings extends credit facility maturity to 2030 with Bank of America

Torrid Holdings Inc. (NYSE:CURV), a specialty retailer with a market capitalization of $263 million and current stock price of $2.50, announced Monday that its subsidiary, Torrid LLC, has entered into a Fifth Amendment to its Amended and Restated Credit Agreement with Bank of America, N.A., acting as administrative and collateral agent, along with participating lenders.

According to the company’s statement in a Securities and Exchange Commission filing, the amendment extends the maturity date of Torrid’s existing asset-based lending (ABL) facility from June 14, 2026, to the earlier of August 1, 2030, or 91 days prior to the maturity of any material indebtedness as defined in the agreement. The company reported that there were no other material changes to the terms of the credit facility.

The amended agreement maintains Torrid’s existing borrowing arrangements and obligations under the ABL facility, with Bank of America continuing in its roles as administrative and collateral agent.

This information is based on a press release statement included in the company’s SEC filing.

In other recent news, Torrid Holdings Inc. reported its first-quarter 2025 earnings, showcasing a mixed financial performance. The company achieved an earnings per share of $0.06, exceeding the forecasted $0.05, but fell short on revenue, reporting $266 million against the expected $278.83 million. Concurrently, Torrid announced a public offering of 10 million shares by certain stockholders, with an option for underwriters to purchase an additional 1.5 million shares. The company will not receive any proceeds from this offering, as the shares are being sold by existing investors. Additionally, Torrid has agreed to repurchase $20 million of its shares from Sycamore Partners, which will be held as treasury stock.

BTIG initiated coverage of Torrid with a neutral rating, noting the company’s dominant position in the plus-size apparel market and the opportunities for further market share gains. However, Torrid has faced three consecutive years of negative growth and margins below historical levels. BofA Securities adjusted its outlook on Torrid, lowering the stock price target to $7 from a previous $7.80, while maintaining a Buy rating due to confidence in the company’s long-term sales strategy. These developments reflect the ongoing challenges and strategic adjustments Torrid is undertaking in the competitive retail landscape.

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