SLR Credit Solutions Provides Financing for bebe stores, inc. and Maurices

bebe stores, inc. (OTCQB:BEBE)  is a global specialty licensor of fashion apparel and accessories that distributes bebe-branded products worldwide through licensees in approximately 100 international stores and online. In addition to the bebe brand, the Company maintains other investments in brand royalty joint ventures such as Brookstone.  bebe also owns and operates 55 rent-to-own Buddy’s Home Furnishings franchise locations across the southeastern U.S., offering furniture, appliances and electronics to consumers through rent-to-own agreements.  www.bebe.com  www.buddyrents.com

bebe acquired a 47-unit franchisee in Buddy’s in November 2020 and the debt facility used to facilitate the initial acquisition had an upcoming maturity.  Further, the Buddy’s franchisee agreement requires additional store growth and development within the Company’s exclusive territory requiring the Company to seek incremental capital.

SLR Credit Solutions provided a $25,000,000 senior secured term loan and a $10,000,000 committed delayed draw term loan.  Proceeds were used to refinance debt, finance the acquisition of stores within the Buddy’s franchise systems and fund organic store growth.  The reduced cost of capital and more flexible structure also facilitated increased dividends to shareholders.

Maurices is a women’s specialty apparel “hometown retailer” operating ~ 900 locations nationwide and on www.maurices.com.  They provide a broad assortment of proprietary branded fashion merchandise across multiple categories including casual, career and athleisure.

OpCapita LLP, a private equity firm specializing in the operational improvement of businesses with scale in the retail, consumer and leisure industries, acquired the business from Ascena Retail Group in May 2019.  After stabilizing the Company, completing the transition to a stand alone business, implementing many operational improvements, and increasing E Comm penetration, the sponsor wanted to recapitalize the business.

SLR Credit Solutions provided an $80,000,000 commitment as a co-lender in a $200,000,000 facility.  The Company’s assets, including brand value, as well as cash flows supported the loan structure.  Proceeds were utilized to support growth initiatives, refinance its prior senior credit facility and pay a dividend to the shareholders.