A group of lenders led by Carlyle Group Inc. and including HPS Investment Partners has agreed to provide around US $ 230 million-equivalent of debt to help finance Advent International’s acquisition of a majority stake in Australian fashion brand Zimmermann, according to people with knowledge of the matter.
According to the people, who asked not to be identified since the information regarding the transaction is private, the financing was set up as a unitranche loan with a 2029 maturity date and interest rates that are 6.5 percentage points higher than the benchmark.
A smaller amount of the debt is denominated in euros and priced over Euribor, while the majority is priced over the Secured Overnight Financing Rate and denominated in US dollars. According to the persons, Advent has acquired a separate revolving credit line for the deal.
Advent’s acquisition values the fashion house at about $1 billion, Bloomberg previously reported. Italian private equity firm Style Capital and Zimmermann’s founding family will retain significant minority stakes in the company, according to a statement earlier this month.
