General Atlantic is set to exit its long-standing investment in Tory Burch, as the luxury retailer moves to repurchase the private equity firm’s stake through a $700m leveraged loan, Bloomberg reported.

The transaction will see approximately $346m allocated to buying out General Atlantic’s interest, marking the end of a partnership that dates back to 2012. The financing also includes a $300m five-year revolving credit facility aimed at refinancing existing debt.

Moreover, the deal highlights a continued trend of sponsor exits via leveraged recapitalisations, as companies use debt markets to restructure ownership while maintaining operational control.

The seven-year loan backing the transaction is being marketed at a spread of 3.75% to 4% over benchmark rates, with pricing set at a discount of 98.5, according to Bloomberg data. 

Bank of America is leading the process, with lender commitments expected by mid-April.

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