The cash portion of the purchase price was paid from the proceeds of a $350 million six-year senior secured term loan, and the balance from borrowings under a $650 million five-year senior secured asset based revolving credit facility and cash on hand. The new revolving credit facility refinanced and replaced the company's existing credit facility, G-III said.
The $125 million junior lien seller note included $75 million in principal amount with a six and a half year maturity and $50 million in principal amount with a seven year maturity.
“Donna Karan International is a transformative addition to our global portfolio of iconic brands and enhances our position as a fashion leader. We believe there is a need for these brands in the market and that DKNY alone has the potential to generate $1 billion in annual sales. Working closely with our partners and through our strong licensing network, we are confident we can quickly bring to market a comprehensive and compelling lifestyle offering that will restore the DKI brands to prominence and excite consumers,” commented Morris Goldfarb, chairman and chief executive officer of G-III.
“We have always sought to build our business in a way that will provide us with long-term sustainable growth. DKI's brands – DKNY, Donna Karan and DKNY Jeans – fit squarely with that strategy and are now part of the powerful G-III portfolio that includes Calvin Klein, Karl Lagerfeld and Tommy Hilfiger. Donna Karan is an excellent growth catalyst for our company and we are well positioned to continue to capitalise on the significant opportunities ahead,” he added. (RKS)
Fibre2Fashion News Desk – India