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Bank Hapoalim Provides $28.875MM Facility to XcelBrands

March 03, 2016, 07:26 AM
Filed Under: Media

Xcel Brands, Inc., a brand development and media company, has completed a refinancing of its senior debt with Bank Hapoalim B.M. The new credit facility refinances and consolidates approximately $27.875 million of senior debt that the Company previously held with Bank Hapoalim B.M. through its subsidiaries IM Brands, LLC, JR Licensing, LLC and H Licensing, LLC, and extends the term of such consolidated debt facility through January 1, 2021. Some of the key terms of the new credit facility include the following:

  • $27.875 million of senior secured debt under Xcel Brands, Inc., guaranteed by certain of Xcel’s subsidiaries;
  • Interest rate is fixed at 5.10%;
  • Scheduled Amortization of $2,625,000 for the remainder of 2016, $4,000,000 per year each year from 2017 through 2020, plus an annual cash flow sweep of ten percent (10%) of the Company’s cash flow (as defined in the credit facility), and the balance due on January 1, 2021.

Robert W. D’Loren, Chairman and CEO of Xcel, stated “We are pleased to extend our debt facility with Bank Hapoalim and appreciate the support they have provided to us as a financing source for the Company. The amended facility provides us with a long-term financing solution and increased financial flexibility as we continue to have one of the lowest leverage ratios in our industry. We believe the completion of this transaction is an important step that better positions Xcel to execute on our strategic initiatives to drive long-term growth and maximize value for our shareholders.”

Xcel Brands, Inc. is a brand development and media company engaged in the design, production, licensing, marketing and direct-to-consumer sales of branded apparel, footwear, accessories, jewelry, home goods, and other consumer products, and the acquisition of dynamic consumer lifestyle brands. Xcel was founded by Robert W. D’Loren in 2011 with a vision to reimagine shopping, entertainment and social as one.

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