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True Religion Jeans Emerges From Bankruptcy With $60MM in Exit Financing Provided by Citizens Bank

October 30, 2017, 07:40 AM
Filed Under: Retail

After less than four months, True Religion Brand Jeans has emerged from Chapter 11 Bankruptcy following negotiations with its key stakeholders, under a Plan of Reorganization approved by the Delaware Bankruptcy court on October 5, 2017.

True Religion’s re-organization plan allows the California-based denim company to greatly de-leverage its balance sheet, reducing its term loans from $471 million to $113.5 million upon emergence and extending its debt maturities to 2022. Debt Service each year will be substantially reduced, clearing the way for continued investment and company growth.

Citizens Bank announced that Citizens Commercial Banking has provided a new $60 million credit facility to Manhattan Beach, Calif.-based True Religion Brand Jeans, Inc., a premier retailer of denim, vintage-inspired knits, graphic tees and activewear since 2002. Citizens previously provided $60 million in debtor-in-possession financing for True Religion in July.

The new credit facility will be used by True Religion for working capital as the retailer grows the business post-reorganization.
“Citizens bankers have been our trusted advisers and have provided essential financial support to help True Religion execute on our restructuring plan,” said John Ermatinger, President and CEO of True Religion. “We look forward to continuing to work with Citizens and appreciate their expertise and the value-added solutions they have provided.”

“At Citizens, we think about the needs of our clients from their point of view and offer holistic solutions that deliver the combined strength of the entire bank,” said Jaime Ward, Head of Retail Finance, Citizens Bank. “The debtor-in-possession and plan-of-reorganization credit facilities we provided True Religion demonstrate some of the ways that Citizens delivers substantial value for our clients at every stage of their business life cycle.”

“We would like to thank our consumers, our employees, vendors and suppliers for their unwavering support and continued dedication to the True Religion brand,” said True Religion CEO John Ermatinger. “With substantial debt burden removed, we are eager to turn our full attention to implementing our forward-thinking strategy, including improving our retail operations, new partnerships and growing the brand’s digital presence.” Ermatinger added, “With the consummation of this restructure, we are very excited and poised for the future.”



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