Second Avenue Capital Partners Facilitates Acquisition Financing for True Religion Apparel

Second Avenue Capital Partners Completes Financing for True Religion's Acquisition

Boston, January 15, 2025 – In a significant move for the apparel industry, Second Avenue Capital Partners (SACP), an affiliate of Schottenstein, along with Alpha Wave Global and Sagard Credit, announced the closure of a new term loan and revolving credit facility for True Religion Apparel, Inc. This arrangement plays a pivotal role in the recently unveiled acquisition of a controlling interest in True Religion by ACON Investments, L.L.C., supported by strategic partner SB360 Capital Partners.

SACP has been instrumental in this transaction, taking on multiple roles as the Sole Arranger, Revolver Agent, and Sole Revolver Lender. The credit facilities are aimed at backing the acquisition efforts as True Religion looks to expand its market presence and diversify its offerings.

According to Michael Sullivan, Managing Director of SACP, “This transaction underscores the strength and versatility of the Schottenstein platforms in empowering both retailers and sponsors.” The collaboration with SB360 was described as seamless, combining debt and equity solutions to facilitate this acquisition successfully.

Since its inception in 2002, True Religion has carved out a niche in the denim market, renowned for its innovative approach to jeans design. The brand’s flagship product, the True Religion Super T stitch, has become a symbol of style, appealing to a diverse clientele including athletes, musicians, and fashion enthusiasts worldwide. True Religion operates as an omnichannel retailer, boasting 51 branded locations and a robust e-commerce platform, complemented by a network of long-term wholesale partnerships.

The acquisition is backed by a combination of both new and continuing limited partners of ACON, highlighting the strategic partnership with SB360, a seasoned investor within the retail sector. This collaboration is expected to amplify True Religion's growth trajectory, expand its geographic reach, and enhance its product variety.

Michael Buckley, the CEO of True Religion and a notable minority shareholder, expressed confidence in SACP's long-standing partnership. He stated, “Their continued support and resources during this acquisition phase will be crucial for our advancement as we embark on the next chapter of True Religion.”

Further emphasizing the optimistic outlook of this newly formed alliance, Michael Russell, Managing Director of SACP, remarked, “We are thrilled to continue our partnership with Michael Buckley and the talented team at True Religion. This new chapter in our collaboration with ACON and SB360 represents an exciting opportunity, and we anticipate contributing significantly to the company's ongoing success.”

About the Companies Involved

Second Avenue Capital Partners specializes in asset-based lending primarily focused on the retail and consumer products industry, offering tailored financial solutions for mid-market companies. Their approach leverages the expertise of retail operators and lenders to unlock value in assets that traditional capital supporters may overlook.

True Religion Apparel was founded to revolutionize the denim industry with its unique style signature. The brand's focus on quality and premium offerings has garnered a loyal following and positioned it as a leading lifestyle brand.

ACON Investments operates internationally with a philosophy centered on making significant investments in middle-market sectors across the globe, drawing on its extensive track record and strategic insights.

SB360 Capital Partners is recognized in North America as a pivotal advisory and retail investment firm, specializing in fostering growth opportunities with a deep financial portfolio in consumer brands and retail operations.

As these entities join forces, the future for True Religion appears promising, with strategic investments in place to drive innovation and growth within the competitive apparel space.