Both GE Capital and Bank of America have been busy on the lending front.
This story first appeared in the September 24, 2009 issue of WWD. Subscribe Today.
The corporate retail finance group of GE Capital as well as Bank of America are the co-agents of a $400 million asset-based credit facility to BCBG Max Azria Group.
The BCBG loan will be used for working capital needs, according to GE Capital. The facility may be increased to up to $450 million if certain conditions are met. GE Capital is the co-collateral agent on the facility, while Bank of America, the other co-lead, is administrative agent.
BCBG is a Vernon, Calif.-based firm founded in 1989, and has more than 13,500 retail and wholesale sites worldwide. Its portfolio has 22 brands, including BCBG, Max Azria and Hervé Léger.
“GE delivered the liquidity and flexibility we needed to grow our business,” said Ben Malka, BCBG’s president, who added that the loan will help the firm expand its new Miley&Max line for Wal-Mart Stores Inc.
GE’s corporate retail finance group also acted as collateral agent on a $200 million asset-based credit facility for Quiksilver Inc., for which GE Capital Markets was the co-lead arranger along with Bank of America. The loan will be used for working capital needs in the Americas.
Quiksilver is a Huntington Beach, Calif.-based outdoor sports lifestyle firm. The company’s products, a diversified mix of branded apparel, footwear, accessories and related offerings, are sold in more than 90 countries.
According to Joe Scirocco, chief financial officer of Quiksilver, the quick completion of the $200 million facility was “integral to our ability to simultaneously execute other financing transactions both in the U.S. and in Europe.”
The other transactions include a four-year committed financing arrangement from Société Générale Bank & Trust, which includes term loans of 170 million euros, or $250.8 million at current exchange, and a five-year, $150 million term loan from international private equity firm Rhone.
At the time Quiksilver revealed its various financing transactions in August, Robert B. McKnight Jr., chairman, president and chief executive officer, said, “We have been working to improve our capital structure for some time and are very pleased to have completed this comprehensive refinancing of our global business.”
McKnight said the financing agreements allow the firm to “fully concentrate our efforts on streamlining the business and making great product within our three great brands — Quiksilver, Roxy and DC.”
In the first nine months of fiscal 2009, Quiksilver incurred a net loss of $190.3 million, or $1.49 a share, including a loss from discontinued operations of $132.8 million, principally from the now divested operations of ski brand Rossignol.