London- and New York-based TowerBrook Capital Partners has agreed a refinancing package worth CHF86.7 million (€55 million; $79 million) for portfolio company Odlo, a designer, manufacturer and distributor of sportswear. The proceeds will be used to pay a dividend as well as refinance existing debt.
TowerBrook was delighted to complete the refinancing “in these turbulent credit markets”, said senior managing director Patrick Smulders. He added that the package provided “a solid platform to pursue the next stage of [the firm’s] growth strategy”.
The debt facility comprises CHF61.7 million of senior bank debt and a revolving facility of CHF25.0 million and was structured by UBS, Luzerner Kantonalbank and Zuger Kantonalbank.
Odlo, which distributes its range of “functional sportswear” in Germany, France, Switzerland, Austria, and Benelux, has experienced double digit revenue growth on average since its takeover by TowerBrook in 2006, according to a statement.
“The terms [of the total new debt facilities] are very similar to the senior bank debt agreement entered into at the time of the acquisition,” the firm said.
Commenting on general market conditions, Fenton Burgin, a partner in Deloitte’s debt advisory practice, said: “‘Cash out’ deals have been few and far between in recent months. The timing of this transaction could be very opportune, given the increasing pressures facing the retail sector.”
Lead by co-chiefs Ramez Sousou and Neal Moskowski, TowerBrook manages more than $4 billion in assets, and its portfolio includes such companies as fashion house Jimmy Choo and Sports Capital Holdings, the owner of the St. Louis Blues ice hockey team.