Second Avenue Capital Partners Secures Credit for True Religion

Overview of Credit Facilities for True Religion Apparel

Second Avenue Capital Partners (SACP), a Schottenstein affiliate, in partnership with Alpha Wave Global and Sagard Credit, has successfully closed a new term loan and revolving credit facility to finance the acquisition of a controlling stake in True Religion Apparel, Inc. This notable transaction demonstrates SACP's ability to deliver flexible financial solutions catering to the retail sector.

Structure of the Financing Arrangement

This acquisition was made possible through credit facilities that will empower True Religion as it moves forward under the guidance of its new majority owners, ACON Investments, L.L.C. and SB360 Capital Partners. SACP's roles included Sole Arranger, Revolver Agent, and Sole Revolver Lender, highlighting the confidence placed in the company's financial strategies.

Significance of the Acquisition

The acquisition of True Religion is a pivotal moment for both ACON and SB360, as the company looks to leverage their combined expertise to rejuvenate the brand. With a comprehensive portfolio of products and a growing e-commerce channel, True Religion is poised to expand its footprint and continue its evolution in the apparel market.

Statements from Leadership

Michael Sullivan, Managing Director at SACP, remarked that the transaction exemplifies the versatility of the Schottenstein platform, empowering retailers through effective financing solutions. True Religion CEO, Michael Buckley, expressed confidence in the partnership and highlighted the benefits of SACP's support, which positions the brand for continued success.

About True Religion Apparel

Established in 2002, True Religion quickly redefined the denim industry with its innovative designs and commitment to quality. The brand enjoys strong recognition among consumers, from everyday customers to celebrities. The company operates 51 branded locations and boasts an enthusiastic following across various demographics.

Plans for Future Growth

Looking ahead, True Religion aims to enhance its market share through strategic investments, including further diversification of its product lineup. The collaboration with ACON and SB360 promises to support these growth initiatives while preserving the brand's unique identity.

About Second Avenue Capital Partners

SACP specializes in providing asset-based loans tailored specifically for the retail and consumer products sectors. With a deep understanding of retail operations, the firm offers innovative capital solutions designed to meet the needs of middle-market companies. Their unique perspective allows them to identify opportunities for unlocking value in various asset classes.

Understanding the Partners

ACON Investments is recognized as a leading international private equity firm, managing a substantial portfolio of investments across multiple sectors, including retail and consumer products. SB360 Capital Partners, also a Schottenstein affiliate, stands out in the advisory space, actively participating in growth-focused investments.

Frequently Asked Questions

What is the primary purpose of the credit facilities?

The credit facilities are aimed at financing the acquisition of True Religion Apparel by ACON Investments and its partners, facilitating strategic growth plans.

Who are the main players involved in this transaction?

The key players include Second Avenue Capital Partners, ACON Investments, and SB360 Capital Partners, each bringing significant expertise to the collaboration.

How does this acquisition impact True Religion?

The acquisition positions True Religion to expand its market presence and enhance product offerings, leveraging the resources and experience of its new partners.

What is the history of True Religion Apparel?

Founded in 2002, True Religion has established itself as a prominent brand in the denim industry, known for quality and stylish designs that appeal to a wide audience.

What role does Second Avenue Capital Partners play?

SACP acts as the financial partner for True Religion, providing essential capital resources and lending support to aid in the brand's growth initiatives.

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