Aeropostale closes Sycamore transaction; names two board members
New York - Aeropostale Inc. 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.
In addition, through the new strategic sourcing partnership with MGF Sourcing, Aeropostale has committed to complete minimum merchandise purchases each year for 10 years. 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 CEO of Crumbs Bake Shop and former chairman and CEO of Aeropostale Inc.
Arthur Rubinfeld is also stepping down as a director of Aeropostale. In addition, the company's board of directors will nominate Kenneth Gilman, currently a director of Zale Corp. and Kate Spade & Co., for election as an independent director.
"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,” said Karin Hirtler-Garvey, chairperson of Aeropostale. “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."