Case Study: Francesca’s – Woman Fashion Apparel: Junior Secured Term Loan – $10MM

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 both valuing and monetizing retail assets, with a vast level of experience working with retailers like Francesca’s, such as Aeropostale, Rue 21 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 their 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 $40MM revolving working capital facility.