Versa Capital has finalized its recapitalization of AVENUE Stores, LLC, a plus sized retailer with more than 280 U.S. stores to date. The brand prides itself on providing high-quality, reasonably priced plus size clothing to women.
With this capitalization comes a new and improved capital structure, and will allow the company to provide interim returns to its equity holders. Versa’s AVENUE investment exceeds $120 million, which is more than 9 times its 2012 acquisition.
Versa released a transaction announcement, detailing the decision to work with AVENUE.
“In light of AVENUE’s strong financial profile and the fact it had no prior borrowings, Versa determined it would be prudent to capitalize on today’s historically low interest rates and deliver an attractive return to our investors, while ensuring that AVENUE remained well-equipped to fund its ongoing revitalization. We look forward to continuing our partnership with CEO Liz Williams and the rest of the management team at AVENUE.”
Investors included affiliates of JP Morgan Chase and Goldman Sachs, and involve a $90 million term loan and revolving credit facility. The company, which has been debt free in the past, will now have a modest leverage level, while still being able to pursue expansion and further growth.
By Katie Alteri
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