Home / Knowledge / News / Apparel/Garments / Aeropostale closes $150mn financing with Sycamore Partners
Aeropostale closes $150mn financing with Sycamore Partners
27
May '14
Aeropostale, Inc., a mall-based specialty retailer of casual apparel for young women and men, announced that it has entered into definitive agreements with respect to its previously announced strategic partnership and $150 million senior secured credit facilities with Sycamore Partners. 
 
As previously announced on March 13, 2014, the senior secured credit facilities with affiliates of Sycamore Partners consist of a five-year $100 million term loan facility and a ten-year $50 million term loan facility that includes a sourcing arrangement with MGF Sourcing, also an affiliate of Sycamore Partners.  
 
Aeropostale has issued convertible preferred stock to Sycamore Partners, giving Sycamore the right to acquire up to 5% of the Company's common stock at an exercise price of $7.25, the closing price of the Company's common stock on March 12, 2014.  Additionally, through the new strategic sourcing partnership with MGF Sourcing, Aeropostale has committed to complete minimum merchandise purchases each year for ten years.  As the Company fulfills its minimum purchase requirements under the sourcing partnership, all amortization payments of the associated term loan facility will be fully rebated.  
 
The sourcing partnership significantly diversifies the Company's apparel production and further optimizes its supply chain, and all of the Company's sourcing orders will continue to be awarded through a competitive bidding process.
 
In connection with the closing of the transaction, the Company has appointed two new members to its Board of Directors: Stefan Kaluzny, managing director at Sycamore Partners, and Julian Geiger, former Director and Chief Executive Officer of Crumbs Bake Shop and former Chairman and Chief Executive Officer of Aeropostale, Inc. and, Arthur Rubinfeld is stepping down as a director of the Company. 
 
In addition, the Company's Board of Directors will nominate Kenneth Gilman, currently a director of Zale Corporation and Kate Spade & Co., for election by the Company's stockholders as an independent director at the Company's annual stockholder meeting this year. Mr. Gilman was mutually selected by the Company's Board and Sycamore Partners, as previously announced.    
 
Karin Hirtler-Garvey, Chairperson of Aeropostale, commented, "The Board and management team are very pleased to have completed this transaction with Sycamore Partners, which strengthens the Company's financial position, broadens Aeropostale's already strong sourcing base, and provides additional runway for management to continue executing key strategic initiatives to reposition the Aeropostale brand. 
 
“We look forward to working with Stefan, and to gaining the fresh insights and extensive retail expertise he brings to our Board.  Further, we are pleased to have Julian return to the Board and to have access to his experience in successfully building Aeropostale into a leading teen retailer. At the same time, we thank Arthur for his dedicated service and the counsel he has provided as a member of the Board."
 
Mr. Kaluzny stated, "We continue to believe there is tremendous value in Aeropostale's business.  We are very pleased to partner with the Company's other Board members and management team to help Aeropostale realize the full potential of its brand."

Aeropostale

Must ReadView All

Courtesy: Myntra

Apparel/Garments | On 3rd Dec 2016

Myntra to be EBITA positive by FY18: CEO Narayanan

Myntra is on track to achieve sustainable growth and be EBITA...

Courtesy: India ITME Society

Textiles | On 3rd Dec 2016

India ITME 2016 opens with over 1050 exhibitors

The India International Textile Machinery Exhibition (India ITME)...

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Interviews View All

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search