SACP recognized in ABF Journal’s 2022 Deals of the Year issue for $67.5 Million term loan to The Jessica Simpson Collection
The following appeared in the ABF Journal Q4 2022 Deals of the Year issue, Vol 20, No 4
Second Avenue Capital Partners makes a habit of working with strong brands in the consumer retail space, including UNTUCKit and Sur La Table. So, when The Jessica Simpson Collection, the $1 billion lifestyle brand inspired by and designed in collaboration with Jessica Simpson, was in need of financing after Simpson and her mother and business partner, Tina Simpson, reacquired the entirety of the brand from Sequential Brands, SACP was an ideal lender.
“[The deal] complemented a lot of what’s already in our portfolio and it helps us continue to build that out,” Michael Sullivan, managing director of SACP, says. “I think the strength of this brand is really attractive; it’s something that’s on a great growth trajectory.”
In May, SACP, which is the lending arm of Schottenstein affiliate SB360 Capital Partners, closed a $67.5 million term loan for The Jessica Simpson Collection. The facility was structured as an intellectual property-driven term loan, with SACP configuring the deal around the company’s needs rather than driving for a specific predetermined outcome.
The Jessica Simpson Collection used the financing to retire an earlier credit facility and provide liquidity to fund its expanding portfolio of nearly 40 product categories, with plans to add more. This expansionary vision added to SACP’s interest in not only lending to the brand, but also becoming a long-term partner.
“The key for us was really spending time with the team, the CFO, Tina, the CEO, and, of course, Jessica,” Sullivan says, noting that SACP was “blown away by the management team” and the “very distinct vision” in place for the business.
The adulation goes both ways, as Jeff Howald, CFO of The Jessica Simpson Collection, describes the process of working with SACP as “very well organized and efficient” and “painless.”
“I’ve done many financings in my 40-year career, and this was by far the most well-run process I’ve ever participated in with a lender,” Howald says, noting that the flexibility SACP provided was a critical component in getting a deal done.
In addition to being painless, the deal also came together quickly, with The Jessica Simpson Collection first introduced to SACP in November 2021 and the refinancing completed six months later. According to Aaron Miller, president of SB360 Capital Partners, there was only a month from the date the term sheet was signed until the transaction closed.
SACP’s collaborative and flexible approach certainly played a significant role in getting the deal done so rapidly, but its affiliation with Schottenstein, a company The Jessica Simpson Collection has been working with since 2018, also made a major difference.
“When the opportunity came about, it was reinforced by the long-standing history between the two organizations,” Sullivan says.
“The unique thing about our family office is there’s a lot of connectivity, and we get pulled into projects across the entire organization,” Miller says. “We participated in earlier discussions about the company seeking new financing, and considering their relationship with the broader organization, our financing platform was a natural fit.”