First Citizens Bank Provides $31.5 Million to Fashion Retailer for Purchase of Warehouse and Distribution Center
First Citizens Bank announced a $31.5 million financing deal with Jaclyn to purchase a new industrial warehouse and distribution center in Southern California. The facility, spanning over 233,000 square feet, will serve as the new West Coast hub for Jaclyn and its affiliates within the Golden Touch Group. CFO John Bang of Jaclyn praised First Citizens for their strategic partnership and expertise. Brendan Chambers, Head of Middle Market Banking at First Citizens, emphasized the bank's commitment to supporting Jaclyn's growth. Managing Director Sarah Warren highlighted the long-standing relationship between First Citizens and Jaclyn. The bank's Middle Market Banking division offers a variety of financial solutions to midsize clients.
- First Citizens Bank provided $31.5 million in financing.
- The new warehouse and distribution center spans over 233,000 square feet.
- Facility will serve as new West Coast hub for Jaclyn and affiliates.
- Strengthens 25-year banking relationship between First Citizens and Jaclyn.
- First Citizens' Middle Market Banking offers diverse financial solutions to midsize clients.
- Jaclyn has strong connections with national retailers.
- Finance deal supports Jaclyn's strategic business growth.
- Large financing amount ($31.5 million) may increase Jaclyn's debt burden.
- Dependence on the new distribution center could pose operational risks if issues arise.
- Potential market risks associated with the fashion retail industry could impact future performance.
Insights
The $31.5 million financing provided by First Citizens Bank to Jaclyn LLC for the purchase of a warehouse and distribution center is a noteworthy transaction. From a financial perspective, this deal enhances Jaclyn's operational infrastructure, potentially leading to more efficient logistics and improved supply chain management. The investment in a 233,000-square-foot facility in Southern California suggests a strategic move to bolster their West Coast operations, likely aimed at reducing shipping times and costs.
For First Citizens Bank, this transaction strengthens a long-term banking relationship and showcases their commitment to supporting medium-sized enterprises. This is typical of their Middle Market Banking approach, which focuses on offering tailored financial solutions. The bank's involvement in such significant transactions can bolster its reputation as a reliable partner for mid-market businesses.
From a market perspective, this move by Jaclyn LLC to expand its distribution capabilities signals a positive outlook for the company’s growth. The establishment of a new West Coast facility can significantly enhance their distribution network, allowing for faster and more efficient delivery to retailers and consumers. This expansion is particularly relevant given the increasing consumer demand for quicker shipping times.
This strategic investment could also position Jaclyn and its affiliate Golden Touch Group more favorably in the competitive fashion retail sector. By improving logistics, they may be able to offer better service levels to their customers, which can be a critical differentiator in a crowded market.
The warehouse comprises more than 233,000 square feet and will serve as the new West Coast shipping and distribution center for Jaclyn and its affiliated companies of the Golden Touch Group, providers of merchandise and services to retailers and manufacturers.
"We have a long-established history partnering with First Citizens on strategic ventures that add value to our business," said John Bang, CFO of Jaclyn and Golden Touch. "The solutions-driven approach of the teams at First Citizens delivers expertise, agility and thoroughness to the financing process."
"We appreciate the opportunity to support Jaclyn and Golden Touch's purchase of a new distribution center with owner occupied real estate financing, a core capability of our Middle Market Banking business," said Brendan Chambers, Head of First Citizens Middle Market Banking.
"Jaclyn and Golden Touch are reputable brands and operators who have strong track records and valuable connections with many well-known national retailers," said Sarah Warren, Managing Director at First Citizens. "We're pleased to strengthen our 25-year banking relationship with them through this financing."
First Citizens Middle Market Banking delivers a range of financial solutions to midsize clients through a relationship banking model. The business offers deposit solutions, loans, treasury services and other banking products to manufacturers, distributors and a wide variety of service industries.
About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in
MEDIA RELATIONS:
Lexa Tutela Losey
212-461-5305
Lexa.tutela@firstcitizens.com
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SOURCE First Citizens Bank
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