Recognizing and Unlocking Value
SECOND AVENUE CAPITAL PARTNERS IS CO-AGENT FOR A $40 MILLION SENIOR SECURED CREDIT FACILITY TO JACKRABBIT
BOSTON, Massachusetts – October 29, 2019 – Second Avenue Capital Partners LLC (“SACP”) and Crystal Financial LLC (“Crystal”) announced the closing of a $40,000,000 Senior Credit Facility for JackRabbit (“JackRabbit” or the “Company”), a leading omni-channel retailer of athletic footwear, apparel, and accessories owned by affiliates of CriticalPoint Capital (“CPC”). Proceeds from the transaction are being utilized for general working capital needs, to refinance existing debt, and to facilitate the acquisition of prominent sporting goods retailer Olympia Sports.
JackRabbit offers products for runners, athletes, and fitness enthusiasts through its specialty retail stores in 17 states and the e-commerce sites www.jackrabbit.com and www.clevertraining.com. Olympia Sports and its e-commerce site www.olympiasports.net will become part of JackRabbit but will continue to operate under the Olympia Sports’ banner. The consolidated company will operate 135 brick and mortar stores in addition to the various e-commerce platforms.
Since CPC’s investment in early 2017, JackRabbit has taken many steps to bolster its presence in the active lifestyle category. “The acquisition of the Olympia Sports brand represents a pivotal transformation in our investment in JackRabbit,” said Brad Holtmeier, Partner at CPC. “Not only will the Company have an expanded store footprint, they’ll benefit from additional scale on the digital side of the business as well as with the vendor community.”
In seeking a lending partner, CPC and JackRabbit had need for speed and certainty of execution. “Crystal Financial and Second Avenue Capital Partners are nimble, non-bank providers of debt capital, and they were able to meet all our requirements,” Mr. Holtmeier said. “Their extensive experience working with retail and consumer products companies gave us tremendous comfort that we’re establishing a long-term partnership with firms who truly understand this industry.”
“When CriticalPoint approached us to support JackRabbit in their acquisition of Olympia Sports, we jumped at the opportunity,” said Michael Sullivan, Managing Director of SACP. “As a New England based firm with an impressive 45-year history, Olympia Sports is a retailer we all grew up shopping. Now as part of JackRabbit, the combined store base and e-commerce sites are positioned to provide a broad range of athletic goods and further serve the needs of dedicated athletes and runners nationwide.”
Kenny Smith, Managing Director of Crystal Financial stated, “CPC in partnership with JackRabbit’s CEO Bill Kirkendall, has successfully developed and enhanced the JackRabbit platform to deliver best in class products and services to both the serious and recreational athlete. We are excited to be involved in the continuing evolution of this Company and we look forward to working with both CPC and the JackRabbit management team.”
About Second Avenue Capital Partners LLC – Second Avenue Capital Partners LLC (www.secondavecp.com), a Schottenstein Affiliate, is a finance company specializing in asset-based loans for the broader retail and consumer products industry. Focused on serving middle-market companies, SACP leverages the experience of retail operators, product merchants, and lenders to provide an array of customized, capital solutions for businesses. This unique merchant perspective gives SACP the ability to recognize and unlock value in assets other capital providers often overlook or don’t understand. The firm’s tailored financial solutions are a vital resource for clients as they seek the capital necessary to effectuate strategy and achieve financial objectives. Headquartered in Boston, Second Avenue Capital Partners also has offices in New York, Columbus, and Los Angeles.
About Crystal Financial LLC – Crystal Financial LLC, a portfolio company of Solar Capital Ltd. is a leading provider of direct private credit focused on originating, underwriting and managing both asset-based and cash flow financings to middle-market companies. Since inception in 2006, its team of experienced, responsive professionals have provided more than $4 billion in secured debt commitments across a wide range of industries. For more information please visit www.crystalfinco.com.
About CriticalPoint Capital – Founded in 2012, CriticalPoint Capital (www.criticalpointcapital.com) is a private investment firm based in Manhattan Beach, CA. The firm is focused on acquiring companies with long-term value creation opportunities and partnering with management teams that can benefit from patient capital and a thoughtful approach to growth. CPC’s portfolio is currently comprised of five platform investments and the firm looks to grow through additional platform and add-on acquisitions.
About JackRabbit – JackRabbit is a leading omni-channel retailer, specializing in performance running and active lifestyle brands, with 60 stores in 17 states. It also operates digital storefronts www.jackrabbit.com, www.clevertraining.com, and www.surfoutfitters.com