Not Your Daughter’s Jeans Paying Dividend to Falconhead, Other Shareholders

Falconhead Capital is getting a dividend from denim apparel company Not Your Daughter’s Jeans after three years.

News of the dividend was disclosed in an announcement from LBC Credit Partners. LBC, a middle market lender, said Wednesday was part of an $80 million loan that is being used to recapitalize NYDJ Apparel (LBC provided a $10 million senior term loan B that is part of the overall $80 million). The loan rebalances NYDJ’s capital structure and provides a distribution to company shareholder’s, the LBC statement said.

It’s unclear how big the distribution is. However, Thomson Reuters Loan Pricing Corp. says NYDJ is using the $80 million loan to pay a $48 million dividend to shareholders, which include Falconhead.

Lisa Rudes-Sandel and her father George Rudes founded NYDJ Apparel, of Vernon, Calif., in 2003. NYDJ is the company behind Not Your Daughter’s Jeans which targets women aged 35 and older (the jeans are advertised as “Made for Real women with Real curves”). The jeans are sold at stores including Nordstrom, Bloomingdale’s, Macy’s, Dillard’s and Lord & Taylor.

Falconhead, a private equity firm, acquired a controlling stake in NYDJ Apparel in September 2008. It was not clear how much they invested. The Rudes family also retained a stake.

New York-based Falconhead focuses on consumer-oriented companies. It typically invests $10 million to $50 million per deal. Falconhead currently invests in Extreme Fitness, a gym club operator from Toronto; Vista, Calif.-based Javo Beverage, which makes coffee and tea-based drinks; and, Premier, also of Toronto, an operator of luxury spas.

In separate news, we finally have some more information about the MSC Software dividend.

peHUB reported last week that MSC was in the market for a $215 million loan that will be used to fund a dividend to sponsors. At the time, we didn’t know the size of the dividend but now we do. Well, Standard & Poor’s LCD does.

Today, LCD is reporting that Symphony Technology and Elliott Management will receive a $141 million dividend from MSC.

Symphony Technology Group acquired MSC, of Santa Ana, Calif., in October 2009 for about $390 million. Elliott Management retained a stake.

Palo Alto, Calif.-based Symphony Technology is a PE firm that invests in software and services company.

Falconhead declined comment. MSC couldn’t be reached for comment.