TowerBrook Announces Successful Refinancing of Odlo

September 29, 2008 - TowerBrook Capital Partners L.P. (“TowerBrook”), a London and New York-based private equity firm, today announced that it has signed a definitive agreement to refinance Odlo Sports Group AG (“Odlo”), a leading European designer, manufacturer and distributor of functional sports clothing solely based on synthetic fibers.

Since the acquisition of Odlo by TowerBrook in April 2006, Odlo’s revenues have been growing on average at a double digit pace per annum and the refocus on its core business and brand have allowed the Company to strengthen its operations in functional sportswear in Europe and accelerate new product development.

In total new debt facilities of CHF86.7 million were agreed and comprise of senior bank debt of CHF61.7 million and a revolver of CHF25.0 million. The terms are very similar to the senior bank debt agreement entered into at the time of the acquisition. Net debt will be increased to similar levels relative to EBITDA as in 2006, giving the Company sufficient capital and liquidity to further pursue its growth strategy. The new facilities are structured by UBS AG, mandated lead arranger and agent, Luzerner Kantonalbank, co-arranger and Zuger Kantonalbank, lead manager.

The proceeds will be used to refinance the existing remaining debt and to pay a dividend to shareholders. TowerBrook maintains its majority stake in Odlo.
Commenting on the refinancing, Patrick Smulders, at TowerBrook, said: “We are delighted to announce that we have completed a successful refinancing agreement for Odlo, particularly in these turbulent credit markets. It will provide us with a solid platform to pursue the next stage in our growth strategy.”

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