LOS ANGELES -- (Business Wire)
American Apparel, Inc. (the “Company”) (NYSE MKT: APP) announced today
the pricing of $206,000,000 aggregate principal amount of its 13.0%
Senior Secured Notes due 2020 (collectively, the “Notes”).
The Notes will be issued at 97% of par. The Company intends to use the
net proceeds from the offering of the Notes, together with borrowings
under a new asset-backed revolving credit facility, to repay in full and
terminate our credit facilities with Lion Capital, LLC and Crystal
Financial LLC and, to the extent any proceeds are remaining, for general
corporate purposes. The Company anticipates that the closing of the
offering will take place on or about April 4, 2013, subject to customary
closing conditions, including the concurrent closing of the new
asset-backed revolving credit facility.
The Notes will be the senior secured obligations of the Company and will
be guaranteed, on a senior secured basis, by the Company’s domestic
restricted subsidiaries, subject to some exceptions.
The Notes and related guarantees are being offered only to “qualified
institutional buyers” in the United States in accordance with Rule 144A
under the Securities Act of 1933, as amended (the “Securities Act”), and
to non-U.S. persons pursuant to Regulation S under the Securities Act.
The Notes and related guarantees have not been registered under the
Securities Act or any state securities laws and, unless so registered,
may not be offered or sold in the United States except pursuant to an
applicable exemption from the registration requirements of the
Securities Act and applicable state securities laws.
This announcement does not constitute an offer to sell, or a
solicitation of an offer to buy, any security and shall not constitute
an offer, solicitation or sale in any jurisdiction in which such
offering, solicitation or sale would be unlawful.
Cautionary Statement about Forward-Looking Statements
This press release contains forward-looking statements regarding the
Notes and the closing of the offering. Such forward-looking statements
are based upon the current beliefs and expectations of the Company’s
management, but are subject to risks and uncertainties, which could
cause actual results and/or the timing of events to differ materially
from those set forth in the forward-looking statements, including, among
others, whether or not the Company will consummate the offering and the
uses of proceeds of the offering. All forward-looking statements are
qualified in their entirety by this cautionary statement and speak only
as of the date of this release, and the Company undertakes no obligation
to publicly update such forward-looking statements to reflect subsequent
events or circumstances.
Contacts:
American Apparel, Inc.
John J. Luttrell
Chief Financial Officer
213-488-0226
or
ICR,
Inc.
John Rouleau
Managing Director
203-682-8342
John.Rouleau@icrinc.com
Source: American Apparel, Inc.
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