Casper Sleep, a company that sells mattresses directly to consumers, has arranged a $80 million line of credit with the help of Second Avenue Capital Partners and Tiger Finance.
Casper will use the funding to settle its current credit facility and meet its ongoing working capital requirements.
Casper was established in 2014 and was purchased in January by Durational Capital Management in an all-cash deal to take the business private. Durational acquired the brand for $6.90 per share.
“When we acquired Casper, we were excited to partner with Emilie Arel, CEO of Casper, and the team to strengthen their position as an industry-leading brand,” said Eric Sobotka, managing partner at Durational. “We believe the choice of lenders is a vital component to the overall strategy, and SACP and Tiger share our vision for the company. Their extensive consumer expertise allowed them to provide a thoughtful financing solution that supports Casper and drives long-term value.”
The broad retail and consumer products sector is the focus of Second Avenue Capital Partners’ asset-based lending division.
“As a Schottenstein affiliate, we leveraged our deep knowledge of the furniture sector when structuring a debt solution for Casper,” said Mike Sullivan, managing director of SACP, the facility arranger and agent for the transaction. “Durational and the Casper team have an exciting strategy to take this already iconic company to the next level. Teaming with Tiger to provide a customized unitranche term debt solution allows the management team to focus their attention on future innovation and driving long-term growth.”
Tiger Finance, a part of Tiger Capital Group, focuses on secured debt financing, equity investments, thorough appraisals for the ABL sector, and the sale of consumer and industrial assets.
“We’ve partnered with SACP in the past to produce exceptional results for our borrowers,” said Andy Cerussi, managing director of Tiger Finance. “With Casper, we see a strong brand, well-recognized in the market, setting a new standard in sleep innovation. We are excited to leverage our deep retail and brand experience to support the Durational and Casper teams.”
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