NBG Home Reaches Agreement with Lenders to Significantly Reduce Debt and Position the Company for Long-Term Growth

• Majority lenders KKR and Silver Point Capital to provide $30 million in new financing and commit to acquire a recapitalized NBG Home following its reorganization process.

NEW YORK, Feb. 9, 2023 /PRNewswire/ -- NBG Home ("NBG" or the "Company"), a global designer, innovator, and manufacturer of home decor products, announced today that it has entered into a restructuring support agreement with lenders holding the majority of its debt, comprised of credit funds and accounts managed by KKR and funds managed by Silver Point Capital, L.P. ("Silver Point"). Under the agreement, the Company will receive $30 million of new capital and will position itself for future growth and success by reducing its long-term debt by approximately $350 million.  

NBG expects to complete its restructuring within 60 days and intends to continue operating in the ordinary course of business throughout the process, without disruption to its customers, vendors, and employees. As sponsors of the restructuring plan, KKR and Silver Point will acquire the Company unless a higher or better bid emerges during the process.

"Today marks the beginning of our next chapter. I believe this is the best path forward for our hundreds of employees, vendors, and customers and am pleased that NBG Home's lender group and equity holders have such strong confidence in our team.  Their strategic partnership will support our ability to continue growing our business and providing innovative, on trend products to our retail partners that will fill homes with style and functionality," said Hope Margala, President and CEO of NBG Home.

Ms. Margala continued, "The ongoing effects of the pandemic have impacted companies across all sectors, including home decor. For us, supply chain disruption led to our key customers having too much inventory, which meant lower than anticipated demand for our product. In addition, we had to incur freight costs over three times historical averages.  The decisive action we are taking today will help us to quickly return to positive growth. After conducting an extensive review of all strategic alternatives available to us, we are confident that this path will position us for long-term success."

Additional Information

Customers, vendors, employees, or other interested parties who may have questions related to the reorganization may contact Mindy Marcks, Human Resources and Personal Relations for NBG Home. In addition, court filings and other documents related to the restructuring are available on a separate website administered by the Company's claims agent, Omni Agent Solutions at https://omniagentsolutions.com/NBGHome.

NBG Home's legal advisor is Kirkland & Ellis LLP. The Company's investment banker is Guggenheim Securities, LLC and its restructuring advisor is Alvarez & Marsal North America LLC.

The restructuring plan is subject to satisfaction of certain customary conditions, including approvals by the Bankruptcy Court.

About NBG Home

NBG Home is a trusted destination for home décor and styling essentials. With decades of experience across many home decor categories, the Company is a leader and expert in fashion and function alike ? ensuring customers get the best of both worlds. Through industry-leading brands and unrivaled product development, NBG Home crafts unique and unforgettable décor, and provides customers with inspired designs at a great value.

Since 2006, NBG Home has worked diligently to acquire and partner with brands that are true leaders in their category ? helping expand innovation and giving customers greater product variety that they can trust.

SOURCE NBG Home