The US Bankruptcy Court gave an order to Express, Inc. to obtain DIP financing on an interim basis on April 24, 2024. As per the order, the debtor has been authorized to obtain a credit facility in the amount of $25.26 million out of total facility of $161.85 million in revolving loans and letter of credit commitments(First Lien DIP ABL Commitments) and $25 million Second Lien New Money DIP Term Loans from Wells Fargo Bank, National Association, Bank of America, National Association, Fifth Third Bank, National Association and U.S. Bank National Association (First Lien DIP ABL Lenders); ReStore Capital (EXPRS-II), LLC, 1903 Partners, LLC and First Eagle Alternative Credit, LLC (Second Lien DIP Term Lenders) with Wells Fargo acting as the administrative agent. The First Lien DIP ABL Facility would carry an interest rate of SOFR plus 4.25% p.a. along with an additional 200 basis points in the event of default.

The Second Lien DIP Term Facility would carry an interest rate of SOFR plus 11.5 % p.a. along with an additional 300 basis points in the event of default. As per the terms of the DIP agreement, the First lien commitment carries a closing fee of 1% and Second lien commitment carries a closing fee of 3.75%. The DIP facility would mature either on August 20, 2024 or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier.

Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $0.5 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral. The final hearing is scheduled on May 16, 2024.