True Religion Apparel will receive a new term loan and revolving credit facility from Second Avenue Capital Partners along with TCW Private Credit and Sagard Credit, the financial partners announced Wednesday. Terms of the arrangement were not released.
Funds from the new credit facility will go toward refinancing the denim brand’s existing debt, as well as supporting its ongoing working capital needs, according to the release. The influx will also help bolster long-term growth plans.
"This transaction reflects a genuine partnership between our team and the lending group," Michael Buckley, True Religion's CEO, said in the release. "SACP was able to structure a creative financing solution to meet our needs and support our business objectives to propel True Religion's growth."
In July, True Religion hired Kristen D’Arcy to serve in a newly-created role of chief marketing officer. D’Arcy’s hire was part of a larger move by the company to transform into a DTC, digital-first company.
The strategy shift followed a period of upheaval for the brand, which emerged from its second bankruptcy in 2020. At that time, it stated there were plans to reduce operating costs and lower debt load. Last year, Digital Commerce 360 reported that True Religion was aiming to hit $250 million in e-commerce sales and see 50% of its sales come from e-commerce by 2025.”
"We are thrilled to partner with Michael Buckley and the team at True Religion as they enter this exciting next stage of growth," Michael Russell, managing director of Second Avenue Capital Partners, said in a statement.
The financial institution is no stranger to the fashion business, and it also supported innerwear brand ThirdLove earlier in August with a $12 million revolving credit facility.