Houlihan Lokey Advises Everlane

Houlihan Lokey is pleased to announce the successful placement of a senior secured credit facility for Everlane, Inc., a portfolio company of L Catterton, Imaginary Ventures, 14W Ventures, and Maveron (collectively, the Sponsors). The financing consisted of a $65 million asset-based revolving credit facility (the ABL Revolver), and a $25 million first-in last-out term loan (the FILO Term Loan). Proceeds from the transaction were used to refinance existing indebtedness and provide incremental liquidity for growth initiatives as well as to pay transaction-related fees and expenses. The transaction closed on August 26, 2022.

Founded in 2011 and headquartered in San Francisco, California, Everlane is a digitally native, dual-gender apparel, footwear, and accessories retailer of scale that is leading the fashion industry toward a more environmentally conscious, sustainable future with a mission to help people live their best lives, with the least impact on the planet. Everlane prides itself on cultivating partnerships with ethical factories that meet social responsibility standards for fair wages and labor conditions as well as commitments to various environmental mandates to reduce the carbon footprint of the company and its products. As a leading impact-driven, ESG-focused, direct-to-consumer brand in North America and Europe, the company operates through its proprietary website (www.everlane.com) and a growing domestic 10-location brick-and-mortar retail footprint in major cities across the United States, including New York City, Los Angeles, Palo Alto, Boston, Austin, Seattle, and Washington, D.C, among others.

Michael Preysman, Founder, Executive Chairman, and Climate Lead of Everlane, added, “We are proud to have partnered with Houlihan Lokey to secure $90 million of debt capital in this lending environment. It was a tremendous outcome and speaks volumes to the Houlihan Lokey and Everlane teams, as well as the strength of the brand.”

Houlihan Lokey’s Capital Markets Group served as exclusive placement agent to Everlane, assisting the company in arranging, structuring, and negotiating the financing. The financing highlights Houlihan Lokey’s ability to drive outlier results for growth-equity- and venture-capital-backed companies against a backdrop of market volatility. Pro forma for the financing, the company was able to maximize available liquidity in support of growth initiatives with favorable borrowing base terms that included advances on credit card accounts receivable, both landed and in-transit inventories (including seasonal over-advances on each), and intellectual property.

Houlihan Lokey’s Capital Markets Group is one of the largest providers of private capital solutions in the world, raising approximately $15 billion in capital and advising on an additional $7 billion across 150 transactions during fiscal year 2022.