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.