David's Bridal has closed on a $70 million term loan provided by CPPIB Credit Investments Inc., a subsidiary of Canada Pension Plan Investment Board.
The new term loan matures in 2024 and will be used by the bridal and special occasion dress retailer to fund operations and for general corporate purposes. In a release announcing the loan, David’s Bridal, which operates 300 stores across the United States, Canada and the U.K., and franchise locations in Mexico said it was experiencing strong momentum amid the easing of COVID-19 restrictions.
"Having successfully driven our retail service levels to best in class and modernized and digitized our marketing and customer interaction processes, David's is executing well and accelerating its additional growth initiatives," said CEO Jim Marcum. "We are experiencing strong momentum as COVID-related restrictions continue to ease, weddings return, and pent-up demand from last year plays out over the course of this year.”
David’s Bridal has undertaken a major transformation strategy that includes innovative solutions to better serve their customer, including the launch of its first-ever loyalty program, the addition of 3D and AR technologies 3D and augmented reality technologies on their website, a virtual stylist and appointment experience, a partnership for mens’ formalwear with The Black Tux and a flexible payment option. Most recently, it announced 24-house customer support with enhanced conversational marketing services.
"The management team at David's has been extraordinarily successful in executing their transformation plan, despite the impacts of COVID, and this transaction further validates the confidence that we and other existing investors have in the company, its team, and its strategy going forward,” stated Christine Pope, board chair of the company and managing director at Oaktree Capital Management.
As of closing on April 30, 2021, David’s Bridal had total unrestricted cash of $63 million and zero borrowings on its $125 million Revolving Credit Facility.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as the company's legal advisor and Greenhill & Co., LLC served as financial advisor.