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rue21 OK’d To Pay Initial Obligations Related to $125 Million Exit Financing

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The U.S. Bankruptcy Court issued an order approving rue21’s expedited consent motion for entry of an order authorizing the Debtors to incur and pay fees, expenses and indemnification obligations in connection with the Company’s proposed exit financing facility. As previously reported, “This new senior secured asset-based revolving credit facility will be a critical component of the reorganized Debtors’ capital structure insofar as it will help fund certain payments and costs incurred in connection with consummation of the Plan and will be a source of liquidity that the reorganized Debtors will need to purchase inventory and fund operations and other working capital expenses. The Debtors have, in consultation with their advisors, reached agreement, pursuant to and in accordance with a certain commitment letter and related documentation (the ‘Exit Commitment Documents’), on a commitment for the revolving exit facility in a principal amount of up to $125,000,000 (the ‘ABL Exit Facility’), in connection with which Bank of America has agreed to act as sole administrative agent, lead arranger and book runner. The Debtors intend to seek approval of the ABL Exit Facility in connection with confirmation of the Plan.”