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American Apparel, Inc. Announces an Additional $15 Million Commitment Under Its US Revolving Credit Facility

  American Apparel, Inc. Announces an Additional $15 Million Commitment Under
  Its US Revolving Credit Facility

Business Wire

LOS ANGELES -- July 8, 2013

American Apparel, Inc. (NYSE MKT: APP), a vertically integrated manufacturer,
distributor, and retailer of branded fashion basic apparel,announced a $15
million increase in its revolving credit facility with Capital One Leverage
Finance Corp. As a part of this transaction, The Bank of Montreal was added as
a loan participant and the total commitment under this facility was raised to
$50 million from $35 million. The additional commitment was made under
substantially the same terms of the existing facility.

”We are very pleased with the expansion of our credit facility and proud to
have Capital One and The Bank of Montreal as business partners. The expanded
facility strengthens our balance sheet and provides us with greater
flexibility to continue investing in our business and deliver on our 2013
financial targets. Our business fundamentals and momentum remain strong, and
we are committed to building long-term shareholder value through financially
smart decisions that drive return on capital,” stated Dov Charney, American
Apparel's Chairman and Chief Executive Officer.

About American Apparel

American Apparel is a vertically integrated manufacturer, distributor, and
retailer of branded fashion basic apparel based in downtown Los Angeles,
California. As of June 30, 2013, American Apparel had approximately 10,000
employees and operated 245 retail stores in 20 countries, including the United
States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium,
France, Germany, Italy, Netherlands, Spain, Sweden, Switzerland, Australia,
Japan, South Korea, and China. American Apparel also operates a global
e-commerce site that serves over 60 countries worldwide at
http://www.americanapparel.net. In addition, American Apparel operates a
leading wholesale business that supplies high quality T-shirts and other
casual wear to distributors and screen printers.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding
company whose subsidiaries, which include Capital One, N.A., and Capital One
Bank (USA), N. A., had $212.5 billion in deposits and $312.9 billion in total
assets outstanding as of December 31, 2012. Headquartered in McLean, Virginia,
Capital One offers a broad spectrum of financial products and services to
consumers, small businesses and commercial clients through a variety of
channels. Capital One, N.A. has more than 900 branch locations primarily in
New York, New Jersey, Texas, Louisiana, Maryland, Virginia and the District of
Columbia. ING DIRECT, a division of Capital One, N.A., offers direct banking
products and services to customers nationwide. A Fortune 500 company, Capital
One trades on the New York Stock Exchange under the symbol "COF" and is
included in the S&P 100 index.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly
diversified North American financial services organization. With total assets
of $555 billion as at April 30, 2013, and more than 46,000 employees, BMO
Financial Group provides a broad range of retail banking, wealth management
and investment banking products and solutions.

Safe Harbor Statement

This press release, and other statements that the Company may make, may
contain forward-looking statements. Forward-looking statements are statements
that are not historical facts and include statements regarding, among other
things, the Company's future financial condition, performance and flexibility;
results of operations; future business plans. Such forward-looking statements
are based upon the current beliefs and expectations of American Apparel's
management, but are subject to risks and uncertainties, which could cause
actual results and/or the timing of events to differ materially from those set
forth in the forward-looking statements, including, among others: the ability
to generate sufficient liquidity for operations and debt service; changes in
the level of consumer spending or preferences or demand for the Company's
products; increasing competition, both in the U.S. and internationally; the
evolving nature of the Company's business; the Company's ability to hire and
retain key personnel and the Company's relationship with its employees;
suitable store locations and the Company's ability to attract customers to its
stores; the availability of store locations at appropriate terms and the
Company's ability to identify and negotiate new store locations effectively
and to open new stores and expand internationally; effectively carrying out
and managing the Company's strategy, including growth and expansion both in
the U.S. and internationally; disruptions in the global financial markets;
failure to maintain the value and image of the Company's brand and protect its
intellectual property rights; declines in comparable store sales and wholesale
revenues; financial nonperformance by the Company's wholesale customers; the
adoption of new accounting pronouncements or changes in interpretations of
accounting principles; seasonality of the business; consequences of the
Company's significant indebtedness, including the Company's relationships with
its lenders and the Company's ability to comply with its debt agreements,
including the risk of acceleration of borrowings thereunder as a result of
noncompliance; the Company's ability to generate cash flow to service its
debt; the Company's liquidity and losses from operations; the Company's
ability to develop and implement plans to improve its operations and financial
position; costs of materials and labor, including increases in the price of
yarn and the cost of certain related fabrics; the Company's ability to pass on
the added cost of raw materials to its wholesale and retail customers; the
Company's ability to improve manufacturing efficiency at its production
facilities; the Company's ability to effectively manage inventory and
inventory reserves; location of the Company's facilities in the same
geographic area; manufacturing, supply or distribution difficulties or
disruptions; risks of financial nonperformance by customers; investigations,
enforcement actions and litigation, including exposure from which could exceed
expectations; compliance with or changes in U.S. and foreign government laws
and regulations, legislation and regulatory environments, including
environmental, immigration, labor and occupational health and safety laws and
regulations; interest rate and foreign currency risks; loss of U.S. import
protections or changes in duties, tariffs and quotas and other risks
associated with international business including disruption of markets and
foreign supply sources and changes in import and export laws; technological
changes in manufacturing, wholesaling, or retailing; the Company's ability to
upgrade its information technology infrastructure and other risks associated
with the systems that are used to operate the Company's online retail
operations and manage the Company's other operations; adverse changes in its
credit ratings and any related impact on financing costs and structure;
general economic and industry conditions, including U.S. and worldwide
economic conditions; disruptions due to weather or climate change; and other
risks detailed in the Company's filings with the Securities and Exchange
Commission, including the Company's Annual Report on Form 10-K for the year
ended December 31, 2012 and Form 10-Q for the quarter ended March 31, 2013.
The Company's filings with the SEC are available at www.sec.gov. You are urged
to consider these factors carefully in evaluating the forward-looking
statements herein and are cautioned not to place undue reliance on such
forward-looking statements, which are qualified in their entirety by this
cautionary statement. The forward-looking statements speak only as of the date
on which they are made and the Company undertakes no obligation to publicly
update such forward-looking statements to reflect subsequent events or
circumstances.

Contact:

American Apparel, Inc.
John J. Luttrell
Chief Financial Officer
(213) 488-0226
or
ICR, Inc.
John Rouleau
Managing Director
(203) 682-8342
John.Rouleau@icrinc.com
 
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