Case Summary: American Apparel, Inc.

American Apparel, Inc.

$80.0 million revolving credit facility

Overview
American Apparel is a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel based in downtown Los Angeles, California.  As of February, 2012, they operated 250 retail stores in 20 countries, including the United States, Canada, Europe, South America and Asia, as well as a leading wholesale business that supplies high quality T-shirts and other casual wear to distributors and screen printers.  In addition to its retail stores and wholesale operations, American Apparel operates an online retail e-commerce website at http://www.americanapparel.net.

Challenge
The Company was seeking to replace its existing $75.0MM revolving Credit Facility that was expiring in June 2012 and generate incremental liquidity.

Solution
Crystal underwrote and agented an $80.0 million, 3 year revolving credit facility that included a $30 million funded term loan.  This transaction provided enhanced levels of liquidity via advance rates on the borrowing base that included inventory, accounts receivable and the value of the Company's intellectual property in their brand name.

"The Crystal facility delivered on all the objectives we were seeking in this refinance and they completed the transaction in a expeditious manner. Their industry knowledge and appreciation for the improvements in our business over the last year made them a terrific partner and one that was responsive and delivered on the deal as advertised. I look forward to working with a great team of professionals."
John Lutrell, Chief Financial Officer