BOSTON, Oct. 2, 2024
/PRNewswire/ -- Second Avenue Capital Partners ("SACP"), a
Schottenstein affiliate, is pleased to announce the closing of a
$175,000,000 Senior Secured Revolving
Line of Credit for Gabe's, a leading off-price retailer operating
in the mid-Atlantic and Southeast US. The new credit facility,
which was provided by SACP and Ares Management Credit funds
("Ares"), will be used to support Gabe's ongoing growth
initiatives, enhance operational flexibility, and strengthen the
company's capital structure.
There are few lenders that have the deep
retail knowledge and merchant perspective of SACP.
Gabe's, a Warburg Pincus portfolio company, currently operates
161 Gabe's and Old Time Pottery store locations across 20 states.
The company was founded in 1961 by brothers James and Arthur Gabriel, and is headquartered
in Morgantown, West Virginia.
Today, Gabe's stores offer top brand names and fashion at savings
up to 70% off department store merchandise across men's, ladies',
and kids' apparel, as well as accessories, footwear, home, and
essentials.
Andrew Prunier, Managing Director
of Second Avenue Capital Partners, commented, "Gabe's has built a
strong position in the off-price retail market, and we are thrilled
to partner with them at this exciting stage of their growth. This
credit facility will provide the company with the financial
resources and the liquidity they need to capitalize on new
opportunities and maintain their competitive advantage in a dynamic
retail landscape."
"There are few lenders that have the deep retail knowledge and
merchant perspective of SACP, and even fewer that can be genuine,
productive partners for a business like ours," said Jason Mazzola, President and CEO of Gabe's. "Our
long-term relationship with SACP and SB360, and our ability to work
side-by-side with them are core to the structure of this
transaction. We appreciate their ongoing support and look forward
to the many opportunities it will provide us."
Aaron Miller, President of SB360
Capital Partners, the parent company of SACP, added, "This
financing package represents the culmination of our long-term
relationship with Gabe's. Our team members have played roles in
previous financing transactions for both Gabe's and Old Time
Pottery (OTP). Before its acquisition by Gabe's, OTP was part of
SACP's loan portfolio. In addition, SB360 has provided advisory
services, offering strategic consultation and support to Gabe's and
OTP."
Furthermore, Marc Price,
Executive Vice President of SB360, has an enduring relationship
with Warburg Pincus. Bringing it full circle, Mr. Miller continued,
"Marc's relationship with Warburg connected all the dots in
aligning our partnership with Gabe's leadership team and the
operating business. We're excited to continue strengthening our
collaboration with all parties involved."
Second Avenue Capital Partners offers customized financing
solutions that address each client's unique needs, employing a
comprehensive, integrated approach to support businesses across
various industries. SACP's credit facilities are structured to
optimize liquidity while mitigating risk, empowering companies to
navigate market volatility and seize growth opportunities.
Providing clients with a broader range of capital solutions, SACP
enables them to achieve their strategic objectives more
effectively.
About Second Avenue Capital Partners LLC –
Second Avenue Capital Partners, LLC (SACP), a Schottenstein
Affiliate, specializes in asset-based loans for the broader retail
and consumer products industry. Serving middle-market companies,
SACP leverages the experience of retail operators, product
merchants, and lenders to deliver customized capital solutions. A
unique merchant perspective allows SACP to recognize and unlock
value in assets other capital providers often overlook or do not
understand. The firm's tailored financial solutions are a vital
resource for clients seeking capital to effectuate strategy and
achieve financial objectives. Learn more at sacp.com.
About Ares Management
Corporation - Ares Management Corporation
(NYSE: ARES) is a leading global alternative investment manager
offering clients complementary primary and secondary investment
solutions across the credit, real estate, private equity and
infrastructure asset classes. We seek to provide flexible capital
to support businesses and create value for our stakeholders and
within our communities. By collaborating across our investment
groups, we aim to generate consistent and attractive investment
returns throughout market cycles. As of June
30, 2024, Ares Management Corporation's global platform had
over $447 billion of assets under
management, with more than 2,950 employees operating across
North America, Europe, Asia
Pacific and the Middle
East. For more information, please visit
www.aresmgmt.com.
About Gabe's – Founded in 1961 in Morgantown, West Virginia, Gabe's is a leading
off-price retailer. Since opening more than 60 years ago, Gabe's
has focused on being the destination for the very best deals on
everything you need. Gabe's shoppers can find top brand names and
fashion at savings up to 70% off department store merchandise
across men's, ladies, and kids apparel, as well as accessories,
footwear, home, and essentials. For more information, please visit
www.gabesstores.com or any of our 161 Gabe's or Old Time
Pottery store locations across 20 states.
About Warburg Pincus – Warburg Pincus LLC is the
oldest private equity firm and a leading global growth investor.
The firm has more than $83 billion in
assets under management. The firm's active portfolio of more than
225 companies is highly diversified by stage, sector, and
geography. Warburg Pincus is an experienced partner to management
teams seeking to build durable companies with sustainable value.
Since its founding in 1966, Warburg Pincus has invested more than
$117 billion in over 1,000 companies
globally across its private equity, real estate, and capital
solutions strategies. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong
Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San
Francisco, São Paulo, Shanghai, and Singapore. For more information, please visit
www.warburgpincus.com.
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SOURCE Second Avenue Capital Partners, LLC