CIT, Garrison Arrange $110MM Financing for Joe’s Jeans Acquisition
CIT Capital Markets served as lead arranger in a $110 million financing for Joe’s Jeans to finance the acquisition of Hudson Clothing Holdings. The transaction consisted of a $50 million senior secured revolving credit facility and a $60 million term loan provided by Garrison Investment Group.
CIT trade finance will serve as the administrative agent and lender for the revolver and will also provide factoring services to the combined companies. Terms of the transaction were not disclosed.
“Joe’s Jeans and Hudson are firmly established brands in the premium denim industry that had established comprehensive factoring and financing relationships with CIT that provided for accounts receivable and inventory financing,” said Jon Lucas, president of CIT Trade Finance. “We’re pleased both companies recognized our deep expertise and gave us the opportunity to arrange financing that supports this transaction.”
Marc Crossman, president and CEO of Joe’s Jeans, said, “Hudson is an American premium brand that presents numerous opportunities to our newly combined entity. Although each company will remain distinctly separate in terms of design and brand, the combination of our two organizations will realize additional benefits through increased purchasing authority with current and future vendors and production cost savings.”
Peter Kim, CEO of Hudson Clothing Holdings, said, “We’re excited by this union as our combined operations will build upon each other’s strengths. CIT’s ability to roll up their sleeves, coupled with their deep industry expertise in retail and apparel as well as industry-leading client service continues to distinguish CIT from its competition.”