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United States : AEROPOSTALE closes $150 million financing transaction

June 1, 2014



Aeropostale, Inc announced that it entered into definitive agreements with respect to its previously announced strategic partnership and $150 million senior secured credit facilities with Sycamore Partners.

The senior secured credit facilities with affiliates of Sycamore Partners consist of a 5-year $100 million term loan facility and a 10-year $50 million term loan facility that includes a sourcing arrangement with MGF Sourcing, also an affiliate of Sycamore Partners.

Aeropostale issued convertible preferred stock to Sycamore Partners, which gives Sycamore the right to acquire 5% of the Company's common stock at $7.25. Through the new strategic sourcing partnership with MGF Sourcing, Aeropostale committed to complete minimum merchandise purchases each year for 10 years.

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 diversifies the company's apparel production and optimizes its supply chain.


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Source: TendersInfo (India)


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