francesca’s

Parameters

Term Loan: $10.0MM FILO, working capital
DIP Loan: $25.0MM
Revolver: $25.0MM Revolver
Term Loan: $6.0MM Equity Investment

Situation

After experiencing several years of rapid growth and profits, the company encountered several years of financial setbacks due to over-expansion, and challenges due to the rapidly changing women’s fashion apparel retail marketplace. The company engaged a well-respected strategic consulting firm along with a new management team to help reposition the company’s product offering, operating platform and capital structure as part of an overall turnaround business plan.

Tiger’s Role

Tiger has a long history in both valuing and monetizing retail assets, with a vast level of experience working with retailers like Francesca’s, such as Aéropostale, Rue21 and Forever 21. As a result, Tiger had a tremendous level of knowledge in the company’s business model, and the underlying working capital assets supporting the term loan, along with a historically long-term, trusted relationship with the senior lender.

Working closely with the company advisors and its senior lender, Tiger funded a $10 million junior secured term loan to supplement the amendment to the existing $40 million revolving working capital facility.