Sycamore agreed to provide a five-year $100m loan and a ten-year $50m loan in exchange for an option to buy a five per cent interest in the company for $7.25 per share, which is the closing price of its stock on March 12.
Aeropostale also released a results report, which showed that the company posted a $70.3m loss in the quarter to February 1 as its like for like sales dropped 15 per cent.
Sycamore managing director Stefan Kaluzny said, “As demonstrated by our firm’s significant existing equity ownership in Aeropostale, as well as this new strategic partnership and financing, we believe there is tremendous value in Aeropostale’s business.
“We look forward to partnering with the Company’s other Board members and management team to help Aeropostale realize the full potential of its brand.”
In February it was reported that Aeropostale could take several hundred million dollars of new investment through a private investment in public equity deal.
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