Shares of American Apparel surged 21.5 percent yesterday after The Post exclusively reported that a firm backed by billionaire George Soros is in talks to extend a new credit line to the struggling retailer.
The credit agreement from Soros-backed Crystal Financial, which could be worth as much as $80 million, will immediately replace a $75 million credit line from Bank of America that matures in July, sources said.
The shares yesterday rose 16 cents to close at 91 cents with 1.4 million shares trading hands — nearly four times the daily average.
The deal could be announced as soon as this week, and comes as American Apparel has seen recent sales momentum. Since December, the retailer has reported comparable-sales gains of 11 percent each month.
The agreement also has the blessing of Lion Capital, a British-based firm that holds a term loan to American Apparel worth nearly $90 million.