Aeropostale Inc said it secured a $150 million credit facility from private equity firm Sycamore Partners, in what could be a lifeline for the struggling teen apparel retailer.Shares of Aeropostale, which reported its sixth straight quarterly loss last week, rose as much as 17 percent on the New York Stock Exchange on Tuesday. The stock was one of the biggest percentage gainers on the exchange." ... The deal with Sycamore eliminates the most significant risk factor over the next 12 months - liquidity," Piper Jaffray analyst Stephanie Wissink wrote in a note."At the current (cash) burn rate, this contribution buys Aeropostale another 6-12 months of operating cash."
Aeropostale, Inc., (Aeropostale) is a mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men through its Aeropostale stores and 4 to 12 year-old kids through its P. Shares of ARO traded higher by 14.96% or $0.51/share to $3.92. In the past year, the shares have traded as low as $3.37 and as high as $15.73. On average, 4339120 shares of ARO exchange hands on a given day and today's volume is recorded at 12601424.
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