Form 4: Fund 1 Investments, LLC Increases Economic Exposure to Tilly's Inc. Through Cash-Settled Total Return Swaps

Fund 1 Investments, LLC and related entities increased their economic exposure to Tilly's Inc. common stock through cash-settled total return swap agreements.

Summary

• Fund 1 Investments, LLC, Pleasant Lake Partners LLC, and PLP Funds Master Fund LP have entered into cash-settled total return swap agreements to gain economic exposure to Tilly's, Inc. (TLYS) common stock.
• On March 26, 2025, the reporting persons acquired economic exposure to 10,014 notional shares at a price of $2.2358 per share.
• On March 28, 2025, they acquired economic exposure to an additional 20,000 notional shares at a price of $2.2536 per share.
• Following these transactions, the reporting persons have economic exposure to a total of 2,107,027 notional shares.
• The swap agreements do not provide the power to vote or direct the disposition of the underlying shares.
• The expiration date of the swap agreements will be automatically extended for successive 12 month periods unless one party provides written notice to the other party.

Sentiment

Score: 5

Explanation: The document is a neutral regulatory filing. It reports transactions without expressing any positive or negative sentiment about the company's prospects.

Future Outlook

The swap agreements will automatically extend for successive 12-month periods unless either party provides written notice to terminate.

Industry Context

The use of cash-settled total return swaps is a common strategy employed by investment funds to gain economic exposure to a company's stock without directly owning the shares or having voting rights. This allows for leveraged exposure and can be used for hedging or speculative purposes.

Key Dates

Keywords

Tilly's Inc., TLYS, Fund 1 Investments, Pleasant Lake Partners, PLP Funds Master Fund, Cash-Settled Total Return Swap, Economic Exposure, Beneficial Ownership, Form 4, SEC