G-III Apparel plans $975 million credit facility with Donna Karan buy

By Sara Rosenberg

New York, July 25 – G-III Apparel Group Ltd. has received a commitment for a $975 million credit facility to help fund its acquisition of Donna Karan International Inc., according to a news release.

Barclays and JPMorgan Chase Bank are the leads on the debt.

The facility consists of a $525 million ABL credit facility and a $450 million six-year term loan, the source said.

Under the agreement, Donna Karan is being bought from LVMH Moet Hennessy Louis Vuitton for $650 million, subject to customary adjustments at closing.

Other funds for the transaction will come from $75 million of newly issued G-III common stock to LVMH and a $75 million 6.5-year seller note.

Closing is expected in late 2016 or early 2017. The transaction is not subject to financing conditions.

G-III Apparel is a New York-based designer, manufacturer and marketer of branded apparel and accessories.

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