TSL Express Daily News

BOSTON, Massachusetts – October 2, 2024 – Second Avenue Capital Partners (“SACP”), a Schottenstein affiliate, is pleased to announce the closing of a $175,000,000 Senior Secured Revolving Line of Credit for Gabe’s, a leading off-price retailer operating in the mid-Atlantic and Southeast US. The new credit facility, which was provided by SACP and Ares Management Credit funds (“Ares”), will be used to support Gabe’s ongoing growth initiatives, enhance operational flexibility, and strengthen the company’s capital structure.

Gabe’s, a Warburg Pincus portfolio company, currently operates 161 Gabe’s and Old Time Pottery store locations across 20 states. The company was founded in 1961 by brothers James and Arthur Gabriel, and is headquartered in Morgantown, West Virginia. Today, Gabe’s stores offer top brand names and fashion at savings up to 70% off department store merchandise across men’s, ladies’, and kids’ apparel, as well as accessories, footwear, home, and essentials.

Andrew Prunier, Managing Director of Second Avenue Capital Partners, commented, “Gabe’s has built a strong position in the off-price retail market, and we are thrilled to partner with them at this exciting stage of their growth. This credit facility will provide the company with the financial resources and the liquidity they need to capitalize on new opportunities and maintain their competitive advantage in a dynamic retail landscape.”

“There are few lenders that have the deep retail knowledge and merchant perspective of SACP, and even fewer that can be genuine, productive partners for a business like ours,” said Jason Mazzola, President and CEO of Gabe’s. “Our long-term relationship with SACP and SB360, and our ability to work side-by-side with them are core to the structure of this transaction. We appreciate their ongoing support and look forward to the many opportunities it will provide us.”

Aaron Miller, President of SB360 Capital Partners, the parent company of SACP, added, “This financing package represents the culmination of our long-term relationship with Gabe’s. Our team members have played roles in previous financing transactions for both Gabe’s and Old Time Pottery (OTP). Before its acquisition by Gabe’s, OTP was part of SACP’s loan portfolio. In addition, SB360 has provided advisory services, offering strategic consultation and support to Gabe’s and OTP.”

Furthermore, Marc Price, Executive Vice President of SB360, has an enduring relationship with Warburg Pincus. Bringing it full circle, Mr. Miller continued, “Marc’s relationship with Warburg connected all the dots in aligning our partnership with Gabe’s leadership team and the operating business. We’re excited to continue strengthening our collaboration with all parties involved.”

Second Avenue Capital Partners offers customized financing solutions that address each client’s unique needs, employing a comprehensive, integrated approach to support businesses across various industries. SACP’s credit facilities are structured to optimize liquidity while mitigating risk, empowering companies to navigate market volatility and seize growth opportunities. Providing clients with a broader range of capital solutions, SACP enables them to achieve their strategic objectives more effectively.

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About Second Avenue Capital Partners LLC – Second Avenue Capital Partners, LLC (SACP), a Schottenstein Affiliate, specializes in asset-based loans for the broader retail and consumer products industry. Serving middle-market companies, SACP leverages the experience of retail operators, product merchants, and lenders to deliver customized capital solutions. A unique merchant perspective allows SACP to recognize and unlock value in assets other capital providers often overlook or do not understand. The firm’s tailored financial solutions are a vital resource for clients seeking capital to effectuate strategy and achieve financial objectives. Learn more at sacp.com.

About Ares Management Corporation - Ares Management Corporation (NYSE:ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of June 30, 2024, Ares Management Corporation’s global platform had over $447 billion of assets under management, with more than 2,950 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.

About Gabe’s – Founded in 1961 in Morgantown, West Virginia, Gabe’s is a leading off-price retailer. Since opening more than 60 years ago, Gabe’s has focused on being the destination for the very best deals on everything you need. Gabe’s shoppers can find top brand names and fashion at savings up to 70% off department store merchandise across men’s, ladies, and kids apparel, as well as accessories, footwear, home, and essentials. For more information, please visit www.gabesstores.com or any of our 161 Gabe’s or Old Time Pottery store locations across 20 states.

About Warburg Pincus – Warburg Pincus LLC is the oldest private equity firm and a leading global growth investor. The firm has more than $83 billion in assets under management. The firm’s active portfolio of more than 225 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Since its founding in 1966, Warburg Pincus has invested more than $117 billion in over 1,000 companies globally across its private equity, real estate, and capital solutions strategies. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information, please visit www.warburgpincus.com.

Media Contacts

Chris O’Connor  781-288-8602, or coconnor@sacp.com

Michael D. Sullivan  781-288-8604, or msullivan@sacp.com

Aaron Miller  781.242.3553, or amiller@sb360.com

Marc S. Price  617.784.9559, or mprice@sb360.com