Houlihan Lokey Advises rue21

Houlihan Lokey is pleased to have advised New rue21, LLC (rue21) on its successful debt placement. Houlihan Lokey served as the exclusive placement agent of a first-lien term loan supporting a shareholder distribution, the refinancing of existing indebtedness, and incremental liquidity for near-term growth initiatives. Houlihan Lokey also assisted with the amendment of rue21’s existing revolving credit facility. The transaction closed on January 24, 2022.

rue21 is one of the nation’s fastest-growing retail destinations, offering a combination of on-trend, quality, and affordable fashion within apparel and accessories, beauty, intimates, and activewear that enable girls and guys, ages 15 to 25, to explore and express their individuality and personal style. Headquartered just north of Pittsburgh in Warrendale, Pennsylvania, the company operates over 650 stores in 45 states and online at www.rue21.com.

Houlihan Lokey’s Capital Markets Group served as the exclusive placement agent to rue21, assisting in arranging, structuring, and negotiating the financing. The new first-lien term loan provides flexible terms as the retail sector navigates challenging market conditions driven by the ongoing COVID-19 pandemic, and enables the company to fund a meaningful shareholder distribution and refinance existing indebtedness while also providing for incremental liquidity in support of near-term growth initiatives. rue21 successfully opened 14 new stores in 2021 and will continue to create exciting omnichannel shopping experiences for customers in the 21 new stores slated to open in 2022. The transaction represents another example of Houlihan Lokey’s ability to drive favorable outcomes for its clients while navigating evolving sector headwinds. Houlihan Lokey’s Capital Markets Group is one of the largest providers of private capital solutions in the world, raising nearly $15 billion across approximately 100 transactions during fiscal 2021.