CIT Backs Parallel Portfolio Company
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CIT Backs Parallel Portfolio Company

cit NFCIT Group has provided a senior secured credit facility to The Fragrance Outlet, a retailer of perfumes and colognes and a portfolio company of Parallel Investment Partners.  CIT Corporate Finance served as Sole Lender and Lead Arranger for the transaction.  The new facility from CIT will be used to continue to grow the company’s outlet mall presence, as well as develop the “Spritz” brand of stores for traditional malls.

“We selected CIT because they were able to close this transaction in an efficient and speedy manner. This financing helps The Fragrance Outlet continue to build its brand recognition with consumers, expand their geographic footprint and enhance its inventory,” said Jed Johnson, Managing Director of Parallel Investment Partners.

The Fragrance Outlet (TFO), acquired by Parallel Investment Partners in May 2008, is a specialty retailer of brand name fragrances, cosmetics and related products. The company’s concept is based upon offering an assortment of branded men’s, women’s, and children’s fragrances to consumers at discounts ranging from 15% to 70% below traditional department store and mall-based specialty retailer prices.  TFO was founded in 1990 by its current CEO with the opening of its first store in Potomac Mills, VA. Currently the company’s store base consists over 70 outlet mall-based stores in 23 states, Puerto Rico, and Guam, all of which are company-owned. TFO is headquartered in Miami (no website found).

“CIT is pleased to be able to support the growth of The Fragrance Outlet by providing this credit facility,” said Bob Bielinski, Managing Director of CIT Corporate Finance, Retail and Restaurants. “Over the last few years, The Fragrance Outlet has taken steps to position themselves for success, and we look forward to growing our relationship in the years to come.”

CIT Corporate Finance provides lending, leasing and other financial and advisory services to the small business and middle market sectors with a focus on specific industries, including: chemicals, commercial real estate, communications, energy, entertainment, gaming, healthcare, industrials, information services & technology, restaurants, retail, and sports & media (www.cit.com/corporatefinance). The corporate finance group is part of CIT, a bank holding company with more than $35 billion in assets. CIT was founded in 1908 and is based in New York (www.cit.com).

“CIT’s deep industry knowledge and flexible financing structures played a key role in this transaction and provides us additional resources to further expand our operations and continue to grow,” said Scott Kanter, Chief Financial Officer of The Fragrance Outlet.

Parallel Investment Partners invests from $7.5 million to $30 million in North American lower middle-market growth companies.  Target companies will have revenues and EBITDA of at least $10 million and $3 million, respectively, and total enterprise values of $20 million to $100 million.  The firm was founded in 1999 and is based in Dallas (www.parallelip.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 9-11-13

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