Centric Brands’ $435 Million Restructuring

Akin Gump Strauss Hauer & Feld LLP advised Blackstone/GSO.

Centric Brands Inc., a leading lifestyle brands collective, announced it has entered into a Restructuring Support Agreement with substantially all of its secured lenders, led by certain funds managed by Blackstone, Ares Management Corporation, and HPS Investment Partners, to recapitalize the company. A team from Akin Gump advised Blackstone/GSO as the second-lien noteholder and debtor-in-possession (DIP) provider.

The move will provide $435 million in DIP financing and allow the company to operate without interruption throughout the restructuring process.

Additionally, the agreement contemplates a timely emergence from the process with a plan to substantially reduce Centric Brands’ funded second lien indebtedness by approximately $700 million, thereby positioning the business for future growth and success. As part of the agreement, the company has voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York, White Plains Division.

Centric Brands (NASDAQ: CTRC) is a leading lifestyle brand collective that designs, sources, markets and sells high quality products in multiple segments, including kids, men’s and women’s apparel, accessories, beauty, and entertainment.

The Akin team was led by Dan Fisher (Picture) and Phil Dublin. They were joined by partners Ira Dizengoff, Brad Kahn, Jaisohn Im and Chad Nichols for finance work and Zachary Wittenberg for corporate work.

Involved fees earner: Ira Dizengoff – Akin Gump; Philip Dublin – Akin Gump; Daniel Fisher – Akin Gump; Jaisohn Jungbin Im – Akin Gump; Brad Kahn – Akin Gump; Chad Nichols – Akin Gump; Zachary Wittenberg – Akin Gump;

Law Firms: Akin Gump;

Clients: Blackstone;

Author: Ambrogio Visconti