Secondary trading prices on luxury retailer Neiman Marcus’ loan and bond dipped this week as the company faces creditors that are pushing back on a potential agreement to restructure debt maturing in 2020 and 2021, Reuters reported. Neiman Marcus’ $2.94 billion term loan B, maturing in October 2020, was quoted between 83.5-84.5 by a secondary trader that follows the company, while an investor spotted the term loan between 84-85, down from a peak of 93.84 in mid-September. The company’s bond debt, due in October 2021 with an 8 percent coupon, fell to roughly 40 cents on the dollar yesterday, compared to more than 60 cents at its peak in November, the investor added. Asset manager Ares Management and the Canada Pension Plan Investment Board (CPPIB) took over Neiman Marcus in 2013, and despite the retailer increasing revenues this year, its worrisome debt level comes amid a wider struggle that has left brick and mortar retailers vulnerable to heightened competition from emerging discount and online-only stores. Saddled with approximately $4.7 billion in debt due in 2020 and 2021, Neiman Marcus agitated creditors in September when it shifted international e-commerce unit MyTheresa to parent company Neiman Marcus Group from its original designation as a subsidiary. Neiman Marcus has enjoyed increased sales this year from its online offering, but MyTheresa accounts for just 7 percent of the company’s revenue.
