Nine West Holdings, Inc.

About

Nine West Group Inc. designs and manufactures footwear, accessories, and jeanswear for women. The Group offers a variety of footwear, such as pumps, boots, booties, flats and ballerinas, sandals, platforms, wedges, and peep toes; flat, wedge, platform, dress, and gladiator sandals; and handbags and accessories. The company serves customers through its retail outlets in the United States and also sells products online. The company was founded in 1983 and is based in White Plains, New York.

BDC Credit Reporter View

There is only one BDC with exposure to bankrupt Nine West Holdings – whose namesake brand has been sold : Corporate Capital Trust (CCT). The BDC has been involved with the Company since 2014 and has invested $6.5mn in the common stock, along with $16.7mn in two senior debt facilities. Given that the Company appears to be close to implementing a restructuring plan, and has a $300mn DIP financing in place, an exit from bankruptcy late in 2018 looks likely. This will probably result in no loss on the senior secured debt – which was carried at par at June 30,2018 – but the very likely Realized Loss of the entire equity stake, which has provided for. We’re not sure if the debt has gone on non-accrual since the bankruptcy in April, which may affect income for the last two quarters. However, no further damage to CCT’s value is projected. In fact, if CCT is repaid at par, the funds can be re-invested at a rate better than the Prime + 21.75% currently charged. (Updated October 18,2018).