Core Announcement

Children’s Place Inc (NASDAQ: PLCE) saw its shares decline 2.8% in after‑hours trading on Tuesday following a $15 million draw from its credit facility with Mithaq Capital SPC.

Credit Facility Details

On July 1, 2026 the retailer executed an unsecured, subordinated promissory note, representing the first advance under a $40 million commitment from Mithaq. The draw reduces the facility’s remaining availability to $25 million. The term loan matures on April 16, 2031 and accrues interest at the Secured Overnight Financing Rate (SOFR) for a one‑month period plus 9.00% per annum. Interest is payable monthly in cash, though the company may defer payments by providing written notice to Mithaq.

Guarantees and Subordination

The loan is guaranteed by Children’s Place subsidiaries, which also guarantee the company’s existing $350 million revolving credit facility with Wells Fargo and its $100 million term loan with SLR Credit Solutions. The new loan is subordinated in payment priority to these senior obligations.

Use of Proceeds

Children’s Place intends to use the $15 million proceeds to prepay amounts under its revolving credit facility, reduce accounts‑payable balances with vendors, and for general corporate purposes.

Related‑Party Context

Mithaq Capital SPC is a controlling shareholder of Children’s Place. Turki Saleh A. AlRajhi, the company’s Executive Chairman, also serves as Chairman and Chief Executive Officer of Mithaq Holding Company. The transaction was approved as a related‑party transaction in accordance with Children’s Place policies.

Management Change

Separately, on July 6, 2026 the board appointed Muhammad Asif Seemab, Managing Director of Mithaq Holding Company, as President and Interim Chief Executive Officer of Children’s Place. He succeeds Muhammad Umair, who resigned from the CEO role but remains on the board. Seemab’s annual cash compensation will remain at $497,500.

Market Reaction

The announcement prompted a 2.8% decline in Children’s Place’s after‑hours share price, reflecting investor response to the financing draw and related‑party dynamics.