Hudson’s Bay Company and Rhône Capital have completed a previously announced $500 million equity investment by an affiliate of Rhône Capital as part of a global, multi-faceted strategic relationship with Rhône and WeWork Companies.
The company said net proceeds from the transaction will be used to repay outstanding borrowings on its asset-based revolving facility, which will reduce interest expense and strengthen its balance sheet.
In connection with the closing of the transaction, HBC has appointed M. Steven Langman, managing director of Rhône, and Eric Gross, managing partner of WeWork Property Investors, to the company’s board of directors.
In addition, Hudson’s Bay also received a deposit in the amount of $75 million in connection with the previously announced sale of the Lord & Taylor Fifth Avenue building to an affiliate of WeWork Property Advisors in a transaction valued at $850 million. It is currently expected that the sale of the Lord & Taylor Fifth Avenue building will close no later than August 10, 2018, subject to the satisfaction of applicable conditions.
