Golden Gate Capital has completed its acquisition of Pacific Sunwear of California Inc.
Under the terms of the retailer’s plan of reorganization, the private-equity firm converted more than 65 percent of its term loan debt into the equity of the reorganized retailer, and provided an additional $20 million in capital to support PacSun’s long-term growth objectives. Wells Fargo has provided an additional five-year $100 million revolving line of credit. The reorganization plan was approved by a Delaware bankruptcy court on Monday.
Josh Olshanksy, managing director at Golden Gate Capital, said that with a “strengthened balance sheet, reduced long-term debt and reduced annual occupancy costs, the company is well-positioned to build a stronger future and achieve long-term success.”
Gary H. Schoenfeld, PacSun’s president and chief executive officer, said the retailer emerged from a “quick and efficient Chapter 11 process as a stronger and more competitive company,” adding that Golden Gate’s support has ensured that all of the retailer’s branding partners “are to be paid in full as part of our plan.”