NEW YORK (TheStreet) -- Aeropostale (ARO) stock is moving higher Tuesday on the news it has entered into definitive agreements in relation to its $150 million senior secured credit facilities with Sycamore Partners. The senior secured credit facilities with affiliates of Sycamore Partners consist of a five-year $100 million term loan facility and a ten-year $50 million term loan facility. Sycamore Partners has been issued convertible preferred stock giving it the right to acquire up to 5% of common stock at $7.25 a share.
Additionally, the teen retailer announced it has appointed Stefan Kaluzny, managing director of Sycamore, and Julian Geiger, CEO of Crumbs Bake Shop, to its board.
In morning trading, shares were up 12.9% to $3.85.
TheStreet Ratings team rates AEROPOSTALE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate AEROPOSTALE INC (ARO) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."