Financing ·
The Children's Place receives $25M from Mithaq term loan to repay revolver
PLCEChildrens Place, Inc.
On September 24, 2026, The Children’s Place, Inc. received $25.0 million in proceeds from the Fourth Mithaq Term Loan, a Shariah-compliant, unsecured, and subordinated promissory note issued to related party Mithaq Capital SPC. This advance fulfills the remaining balance of the company's $40.0 million commitment letter with Mithaq, reducing available capacity to zero. The loan matures on April 16, 2031, accrues interest at SOFR plus 9.00% per annum payable monthly (with deferment rights), and is guaranteed by all subsidiaries that secure the company's existing senior debt facilities with Wells Fargo and SLR Credit Solutions. Concurrently, the company executed amendments to its Wells Fargo credit agreement, SLR loan agreement, and subordination agreement to reflect the new pari passu status of the Mithaq debt; these amendments did not increase principal amounts or commitments under the senior facilities. The net proceeds will be used to prepay amounts outstanding under the revolving credit facility, reduce vendor accounts payable, and for general corporate purposes. The Children’s Place operates as a specialty retailer of children's apparel and accessories.