Xcel Brands Ups Its Buying Power
● The new backing furthers Xcel’s growth and ability to grow its brand portfolio.
Xcel Brands Inc. has refinanced its existing credit facility providing additional wherewithal for future acquisitions.
The refinancing, revealed Friday evening, provides an initial $25 million term loan under a facility jointly provided by BHI and First Eagle Alternative Credit LLC, and up to another $25 million for acquisitions, subject to lender approval.
Separately, First Eagle Alternative Credit is providing a $50 million acquisition facility subject to lender approval, Xcel said in its statement.
“I am delighted to further our relationship with BHI and welcome First Eagle into our capital structure,” said Robert W. D’Loren, Xcel’s chairman and chief executive officer. “The facilities provide us with an immediate $10 million of liquidity and up to $75 million for future acquisitions.” The remaining $15 million was used to cover an existing loan.
“We are seeing attractive opportunities that can drive our digital and livestreaming direct-to-consumer businesses,” D’Loren said. “Timing is perfect for a facility of this nature.”
Larry Klaff, senior managing director for First Eagle, said that he looks forward to supporting Xcel’s strategic growth.
”BHI’s primary goal is to meet the business objectives of our clients and we are delighted to provide financing to facilitate Xcel’s growth,” said Mitchell Barnett, BHI executive vice president and head of commercial and industrial and brand financing.
Xcel’s portfolio of brands includes Isaac Mizrahi, Judith Ripka, Halston, C. Wonder, Longaberger, as well as Logo by Lori Goldstein which was acquired in early April of this year. The company is a media and consumer products company engaged in the design, production, marketing, wholesale and direct-to-consumer sales of branded apparel, footwear, accessories, jewelry, home goods and other consumer products. Xcel, based in New York, was founded by D’Loren in 2011.
BHI is the U.S division of Bank Hapoalim in Israel. First Eagle Alternative Credit is an investment manager for both direct lending and broadly syndicated investments. The firm says that together with its affiliates, it has about $20 billion of assets under management as of Dec. 31, 2020.