Aéropostale Gets Infusion of Cash

Aéropostale Inc. (New York) has signed an agreement with Sycamore Partners (New York) that will provide the retailer with $150 million in financing.

Under the terms of the commitment letter, the financing will consist of a five-year, $100 million term loan facility and a 10-year, $50 million term loan facility. Both are considered senior secured credit facilities.

In return, Sycamore Partners will be issued convertible preferred stock that gives the investor the right to acquire up to 5 percent of the chain’s common stock at Wednesday’s closing stock price.

This would give Sycamore a 12.3 percent stake in the teen retailer and the right to appoint two members of the board of directors.