Soros Seeks Sale of American Apparel Lender Crystal Financial
Billionaire investor George Soros is looking to sell a lending company started by one of his investment funds, according to sources at Bloomberg.
Soros Fund Management LLC, a hedge fund owned by Soros, has hired Deutsche Bank AG to solicit bids for Crystal Financial LLC, a lender to promotional supplier American Apparel. The company could sell for as much as $200 million.
In March, Crystal Financial extended a $80 million line of credit to American Apparel, which replaced a soon-to-expire $75 million line of credit from Bank of America. The apparel supplier's stock, which had been trading below $1 at the time, increased 34 percent overnight following announcement of the deal.
Earlier this week, it was announced that American Apparel had extended its first lien credit agreement with Crystal Financial to December 31, 2012.
For more information, read the full article on Bloomberg.
Kyle A. Richardson is the editorial director of Promo Marketing. He joined the company in 2006 brings more than a decade of publishing, marketing and media experience to the magazine. If you see him, buy him a drink.