True Religion to launch $535 million credit facility on Tuesday

By Sara Rosenberg

New York, July 3 - True Religion Apparel Inc. set a bank meeting for 10 a.m. ET in New York on Tuesday to launch its proposed $535 million senior secured credit facility, according to market sources.

Deutsche Bank Securities Inc., Jefferies Finance LLC, UBS Securities LLC and Macquarie Capital (USA) Inc. are leading the financing.

The facility consists of a $50 million asset-based revolver, a $375 million seven-year first-lien covenant-light term loan and a $110 million eight-year second-lien covenant-light term loan, sources said.

Proceeds will be used to help fund the company's buyout by TowerBrook Capital Partners LP for $32 per share in cash in a transaction valued at about $835 million.

Other funds for the buyout are expected to come from up to $175 million in equity and cash on hand.

Closing is expected in the third quarter, subject to shareholder approval, regulatory approvals and other customary conditions.

True Religion is a Vernon, Calif.-based jeans and jeans-related sportswear company.

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