In what is being seen as a financial savior of sorts, Aeropostale (ARO) has locked in a credit facility from equity firm Sycamore Partners.
The loans are a 5-year $100 million term loan and a 10-year $50 million term loan.
The company had previously announced the deal in March.
“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, in a statement.
“We look forward to working with Stefan, and to gaining the fresh insights and extensive retail expertise he brings to our Board.
Sycamore has a 7.9% stake in Aeropostale. In addition, Stefan Kaluzny, managing director at Sycamore Partners, was added to its Board of Directors.
ARO has been struggling in the mall retail sector of late due to its slower response to fashion trend changes.
ARO stock has fallen some 60% this year.