American Apparel amends Crystal Financial loan, Lion term loan

By Marisa Wong

Madison, Wis., Sept. 11 - American Apparel, Inc. amended its first-lien credit agreement with Crystal Financial LLC to extend to Dec. 31 the period during which loans under the credit agreement based on the company's trademarks may remain outstanding.

The company also added a minimum EBITDA covenant for the remainder of 2012 and a minimum excess availability covenant for the period of Dec. 17 through Feb. 1, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The company's U.K. subsidiaries were added as guarantors of the credit agreement, with their assets securing their guarantees.

The amendment was completed on Aug. 30.

According to the filing, the company concurrently amended its term loan with Lion Capital (Americas) Inc. and Lion/Hollywood LLC. The term loan amendment adds a minimum EBITDA covenant identical to that of the first-lien credit facility and also adds the company's U.K. subsidiaries as guarantors.

American Apparel is a Los Angeles-based manufacturer, distributor and retailer of branded fashion basic apparel.

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