G-III Apparel outlines revised loan plans for Donna Karan purchase

By Sara Rosenberg

New York, Aug. 30 – G-III Apparel Group Ltd. is now planning on getting a $1 billion credit facility to help fund its acquisition of Donna Karan International Inc. and replace an existing $450 million ABL credit facility, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

The new debt is split between a $650 million ABL credit facility and a $350 million six-year term loan, the filing said.

By comparison, when the acquisition was first announced in July, the company said in a news release that it intended to get a $975 million credit facility, comprised of a $525 million ABL credit facility and a $450 million six-year term loan.

Barclays and J.P. Morgan Securities LLC are the lead banks on the debt.

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 by early 2017, subject to certain conditions.

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

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