This transaction highlights CIT’s expertise in retail financing and dedication to supporting middle market companies and their sponsors
NEW YORK--(BUSINESS WIRE)--CIT Group Inc. (NYSE: CIT) a leading provider of financing to small businesses and middle market companies, today announced that it has provided a $40 million senior secured asset based revolving credit facility to J. Jill, a vertically integrated multi-channel specialty retailer of women’s apparel. The financing was provided by CIT Bank, a wholly-owned subsidiary of CIT, to facilitate the acquisition of a majority stake in J. Jill by an affiliate of Arcapita Bank BSC, an international investment firm, from Golden Gate Capital, a private equity firm. Terms of the transaction were not disclosed.
CIT Commercial & Industrial served as Administrative Agent, Collateral Agent and Joint Bookrunner for the financing, which also provides J. Jill working capital for ongoing operations. J. Jill maintains 225 retail stores around the United States employing more than 2,800 associates. Including J. Jill, CIT has completed four transactions on behalf of Arcapita totaling approximately $300 million in financing.
“This transaction highlights CIT’s expertise in retail financing and dedication to supporting middle market companies and their sponsors,” said Bill Kearney, Senior Vice President, CIT Commercial & Industrial, Retail Finance. “Our long-term relationship with Arcapita allowed us to develop a customized financing solution to complete the acquisition, while also providing working capital to J. Jill.”
Scott Buschmann, Principal of Arcapita Bank BSC, said, “CIT’s knowledge of the retail space and leveraged finance, as well as their understanding of the specific nature of our financing needs, made them a logical partner in this transaction.”
Burt Feinberg, Group Head of CIT Commercial & Industrial, said, “Our prior experience working in the retail space allowed us to facilitate this financing as we fully understand J. Jill’s business model. They have a talented and experienced management team, and have done a phenomenal job merchandising their product and providing value to their target customer while continuously improving efficiency in sourcing, marketing and distribution, .enabling them to successfully maximize their multi channel retail strategy.”
According to the National Retail Federation, in the U.S., the retail industry consists of more than 1.6 million American companies that employ nearly 25 million workers and generated 2010 sales of $2.4 trillion.
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About Arcapita Bank BSC
Headquartered in Bahrain with offices in Atlanta, London and Singapore, Arcapita’s four principal lines of business are private equity, real estate, infrastructure and venture capital. To date, the Bank has completed 71 transactions with a total value of more than $28 billion and has an equity capital base of $1.1 billion, and $7.7 billion in funds under management. Arcapita’s mission is to provide innovative and distinctive investment opportunities that generate superior risk-adjusted returns while adhering to Islamic principles. Further details on Arcapita can be found at www.arcapita.com.
About J. Jill
J. Jill is a leading multi-channel fashion retailer of women's apparel, accessories and footwear with 225 stores nationwide, as well as strong catalog and web businesses. With a well defined fashion point of view J Jill’s exclusive designs offer quality, trend-relevant styles that give women an easy way to dress for effortless style. Originally founded in 1959, J. Jill is headquartered in Quincy, Massachusetts. Further details on J. Jill can be found at www.jjill.com.
About CIT Bank
CIT Bank is a state-chartered Utah bank and wholly-owned subsidiary of CIT Group Inc. (NYSE: CIT). It is regulated by the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation. As of March 31, 2011, it had $4.3 billion of deposits, $6.8 billion of assets.
Founded in 1908, CIT (NYSE: CIT) is a bank holding company with more than $35 billion in finance and leasing assets. It provides financing and leasing capital to its more than one million small business and middle market clients and their customers across more than 30 industries. CIT maintains leadership positions in small business and middle market lending, factoring, retail finance, aerospace, equipment and rail leasing, and global vendor finance. www.cit.com