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Columbia Business Monthly

The Business Narrative: Retail Agreement

Jul 30, 2024 09:44AM ● By Donna Walker

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Belk Closes Deleveraging Transaction And New Capital Investment, Positioning Company for Continued Growth, Long-Term Success

Belk, Inc., a privately owned department store with nearly 300 stores across the Southeastern United States, including about three dozen in South Carolina, said it has completed “a value-maximizing deleveraging transaction” with the company’s first and second lien lenders and equity sponsor, Sycamore Partners.

 

Officials said that through the transaction, Belk has reduced its outstanding debt by more than $950 million, amended its existing asset-based credit facility to extend the maturity date to July 2029, and secured approximately $485 million in new capital, including $275 million of secured term loans and a $210 million securitization facility secured by revenue streams from the company’s loyalty credit card program.

 

The transaction is the result of Sycamore’s efforts with Belk’s lenders to significantly deleverage the company’s capital structure, preserve thousands of jobs, and provide the business with additional liquidity to expand national vendor partnerships, the officials said.

 

They said this strategic step strengthens the company’s financial position and further enhances its ability to deliver for its customers and partners.

 

“Today’s announcement marks a pivotal milestone for Belk as we move into the future with a capital structure that positions our business for sustainable, long-term growth and profitability,” said Don Hendricks, Belk’s chief executive officer.

 

Hendricks added, “We are confident that our stronger balance sheet will enable us to build on the momentum and growth we’ve seen in recent quarters, better serve our customers and their communities and be an even stronger partner to our vendors.”

 

The Charlotte Observer reported the 2015 sale of Belk to Sycamore loaded the chain with over $2 billion in debt as department stores nationwide were losing popularity. It reported that in February 2021, Belk filed for and emerged from Chapter 11 bankruptcy the same day.

 

Officials said that through this latest transaction, certain of Belk’s existing lenders, including funds associated with KKR and Hein Park, will have a controlling interest in the business, as the company continues to execute its strategic plan and drive growth.

 

Kirkland & Ellis LLP served as legal advisor, Lazard Frères & Co. LLC served as investment banker, KKR Capital Markets LLC served as the structuring agent and sole arranger on the card program securitization, and C Street Advisory Group served as strategic communications advisor to Belk.

 

Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor, and Evercore served as investment banker to an ad hoc group of first lien term loan lenders.

 

Charlotte, North Carolina-based Belk, Inc. opened its first store in 1888.

Paired Power Installs Resilient Off-Grid Solar Electric Vehicle Charger for Sonoco in South Carolina

Paired Power, a leading U.S. solar microgrid electric vehicle charger manufacturer, announced its installation of its PairTree EV charger for Sonoco (NYSE: SON), a Hartsville, South Carolina-based leading global manufacturer of consumer, industrial, health care and protective packaging.

 

“We’re thrilled to provide the first off grid electric vehicle solar charger to Sonoco, a world-class company with a strong track record of reducing emissions through recyclable material sourcing and countless initiatives,” said Tom McCalmont, Paired Power CEO.

 

McCalmont added, “Obtaining our PairTree to provide Sonoco’s staff with truly green electric car charging is an extension of their leadership’s commitment to the environment.”

 

PairTree can be used for both standalone solar power, or for microgrid renewable power with optional grid connection.

 

PairTree is a U.S.-made solar canopy that combines battery storage with solar power to deliver day or night charging for electric vehicles.

 

As a fully resilient source of electricity, PairTree can also provide emergency backup power during grid outages, and help reduce users’ dependence on the grid.

 

A popular alternative to traditional grid chargers that use “brown” power such as oil and takes years for permitting, PairTree has little permitting and its installation takes less than a day, officials said.

 

Built with durability in mind, PairTree is wind-rated up to 130 mph, which is ideal for regions with unpredictable weather patterns in regions such as South Carolina, the officials said.

 

PairTree fits into a standard 9 x 18 foot parking space. It has no moving parts, and doesn’t require ongoing maintenance. PairTree offers both one or two Level 2 EV charging ports with the industry standard J1772 EV interface.

 

“Paired Power’s solar, off grid car charging technology is the ideal solution to provide resilient and clean energy for our employees who drive electric cars to work,” said Elizabeth Rhue, vice president of Sustainability at Sonoco.

 

Rhue added, “From the simplicity and efficacy of the chargers’ functions to the sleek design, PairTree fits with the ethos of our company’s mission and dedication to sustainability.”

 

With net sales of approximately $6.8 billion in 2023, Sonoco has approximately 22,000 employees working in more than 300 operations around the world.

Governor Appoints Oconee County Treasurer

Gov. Henry McMaster issued Executive Order 2024-12 appointing Gena Acree as Oconee County treasurer following the retirement of current Treasurer Gregorie W. Nowell, effective July 26, 2024. 

 

Acree, a resident of West Union, S.C., currently works in the Oconee County Auditor's Office as a senior records specialist and is a member of the South Carolina Association of Auditors, Treasurers and Tax Collectors.

 

Acree won the Republican primary for Oconee County Treasurer in June and is running unopposed in the general election. 

 

Nowell, a resident of West Union, S.C., has been Oconee County Treasurer since 2007. 

Beware of Scammers Posing As The IRS

Identity thieves may try to contact taxpayers through fraudulent calls, emails, texts and social media messages pretending to be the Internal Revenue Service.

 

Here’s how taxpayers know when it’s the IRS that contacts them.

 

Email, text and social media
The IRS will mail a letter or notice before calling or emailing. The IRS doesn’t:

* Send unexpected or unsolicited text messages to taxpayers.

* Initiate contact with taxpayers by email, text message or through social media. 

* Send messages that ask for personal or financial information, especially when it comes to a tax refund. 

 

Common IRS-related online scams include:

* Emails sent to taxpayers.

* Fake IRS social media accounts that contact taxpayers about a fake bill, grant or refund.

* Text messages sent to taxpayers for fake "tax credits" or "stimulus payments."

 

Scammers’ messages often direct taxpayers to click fraudulent links they claim are IRS websites or other online tools.

 

Phone calls
* After mailing a notice or letter to a taxpayer, IRS agents may call to confirm an appointment or discuss items for a scheduled audit. Taxpayers should know that:

* The IRS doesn't leave pre-recorded, urgent or threatening messages. Scammers will tell victims that if they do not call back, a warrant will be issued for their arrest. These calls are scams.

* Private collection agencies that the IRS works with may call taxpayers to collect certain outstanding inactive tax liabilities, but only after sending written notice to the taxpayer and their representative.

 

The IRS and its authorized private collection agencies will never ask a taxpayer to pay using any form of pre-paid card, store or online gift card. Taxpayers can review the IRS payments page at IRS.gov/payments for all legitimate ways to make a payment. 

 

Letters and notices
A letter or notice is usually the first contact a taxpayer gets from the IRS contacts. If a taxpayer gets a suspicious letter or notice, they can check to see if it's really the IRS:

* Log in to their secure IRS Online Account to find a copy of the notice or letter. 

* Contact IRS customer service to verify it, if they weren't able to do so in their Online Account.

* Review IRS letters and notices at Understanding Your IRS Notice or Letter.

* Confirm that collection notices from a private collection agency have the same Taxpayer Authentication Number as the Notice CP40 the taxpayer received from the IRS.

* Go to Private Debt Collection Frequently Asked Questions to learn more about verifying a private collection agency.

 

Warning signs of a scam
If taxpayers get an unexpected letter, email or text that claims to be from the IRS or another trusted source – like a bank, a credit company or a tax software provider – here are some tell-tale signs that it’s a scam:

* Spelling errors or incorrect grammar.

* A link or attachment that with a slightly misspelled URL or an unusual one such as irs.com. All IRS links go to irs.gov.

* A threatening or urgent request to pay now, to follow a link or to open an attachment.

 

Taxpayers who receive a request from IRS in the mail or by phone can always contact IRS customer service to authenticate it.

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