Simpson Thacher is representing Lion Capital LLP in connection with its investment in American Apparel, Inc., the Los Angeles-based branded fashion apparel company. Under the terms of the transaction, American Apparel borrowed $80 million of secured second lien loans from affiliates of Lion Capital. The loans will accrue interest at an annual rate of 15% and may be paid in cash or in kind. American Apparel also issued to affiliates of Lion Capital detachable warrants to purchase 16,000,000 shares of American Apparel’s common stock. Assuming conversion of the warrants into common stock, the warrants would equate to pro forma ownership in American Apparel of approximately 18%.
The Simpson Thacher attorneys advising Lion Capital on this transaction include: Katie Sudol, Mark Bussey, Jackie Kahng and Sean Crnkovich (M&A); Brian Steinhardt, Justin Lungstrum, Marisa Ma, Amar Qari, Jordan Bleicher and Kristin Marvin (Credit); Gary Mandel, Jonathan Cantor and Amie Broder (Tax); Scott Dyer and Andrew Janis (Labor); Jamin Koslowe and Grace Lin (Executive Compensation and Benefits); Krista McManus (Real Estate); Tim Mulvihill (Environmental); Lori Lesser and Crystal Frierson (Intellectual Property); and paralegals Michael Riordan and Mark Rapisarda.