Case Summary: True Religion

True Religion

$27,500,000 Senior Secured Credit Facility

Overview

Founded in 2002, True Religion is a lifestyle apparel brand which aims to deliver an exclusive assortment of unique designs to its customer base.  Known for its signature styling, the Company focuses on producing high quality premium denim and sportswear for men, women, and children.  True Religion’s products are sold at the Company’s retail stores, www.truereligion.com, department stores, and at specialty retailers globally.

Situation

True Religion initially sought a financing partner who could provide incremental liquidity and  flexibility to allow the Company to pursue its planned strategic objectives. With implementation of various initiatives underway, the onset of the COVID-19 pandemic resulted in the Company filing for bankruptcy protection under Chapter 11 to pursue a formal reorganization.

Solution

Crystal originally agented a $60.0MM senior credit facility to True Religion, comprised of a $30.0MM revolver and $30.0MM term loan, which was secured by a first lien in the Company’s working capital assets in addition to a junior lien on the intellectual property and fixed assets.  When the Company filed for Chapter 11 as a result of COVID-19, Crystal supported True Religion’s plan of reorganization with a $29.0MM debtor-in-possession senior credit facility, and provided emergence financing to the Company upon exit from Chapter 11 in the form of a $27.5MM senior credit facility.