NEW YORK — BCBG Max Azria Group on Friday completed its $53 million bond offering, and at the same time entered into a new $100 million working capital credit facility.
The investment grade bonds are backed via a securitization of BCBG’s trademarks. They were privately placed with an institutional investor and are structured in two tranches, one with an investment grade rating of “AAA” and the other “Baa3” by Moody’s Investor Service. UCC Capital Corp. was the structuring and placement agent for the asset-backed bonds. The working capital facility is provided by GMAC Commercial Finance, as agent, and GE Commercial Finance.
Max Azria, chairman and chief executive office of BCBG, summed up what the new financing arrangement means to his firm in one word: Freedom.
“This will allow us much freedom in our expansion plans. We have a very serious growth plan ahead. We will do it by opening more stores,” he said.
Azria also didn’t rule out the possibility of an acquisition.
The company’s annual volume in 2003 was $240 million, according to the chairman. The projected volume for 2004 is $375 million. “Our company’s volume will grow [by another] 50 percent in 2005 and 40 percent in 2006,” Azria predicted.
The news of a possible bond offering was first reported in these columns in June 2003, and it took over a year to get the deal done.
Robert D’Loren, president and ceo of UCC, explained: “This was a very complicated deal. Unlike others that we’ve done before, this had a very big retail component for a whole company securitization. We worked very closely with BCBG’s asset-based lenders, particularly with GMAC.”
D’Loren added that there were also delays based on Azria needing time to consider every option for his company, which is experiencing “dramatic growth.”
BCBG has a diversified portfolio of brands: BCBG Max Azria Collection; BCBGirls; BCBG//Attitude; To The Max; Parallel; Hervé Léger, and Max Azria Atelier. There are currently 105 BCBG stores in the U.S., and the different BCBG brands are in a total of 5,000 doors in the States. The company has 30 store locations overseas in France, Canada and Japan.As for expansion, Azria foresees around 350 stores in the U.S., but limited growth opportunity overseas.
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)