American Apparel Secures Financing
Los Angeles–based American Apparel completed a $41 million secured-debt financing with a private investment company, which will help the vertical T-shirt maker refinance its existing debt and continue its expansion at retail. Part of the proceeds will help repay American Apparel’s current credit facility with C3 Capital Partners LP. The company also negotiated a waiver agreement with the U.S. Bank National Association, the company’s senior lender, which increased the size of its senior credit facility with American Apparel from $57.5 million to $62.5 million. The news comes on the heels of American Apparel’s proposed merger with publicly traded Endeavor Acquisition Corp., which is expected to close in the second half of 2007.
