First Citizens Bank Provides $31.5 Million to Fashion Retailer for Purchase of Warehouse and Distribution Center

Rhea-AI Summary

First Citizens Bank announced a $31.5 million financing deal with Jaclyn to purchase a new industrial warehouse and distribution center in Southern California. The facility, spanning over 233,000 square feet, will serve as the new West Coast hub for Jaclyn and its affiliates within the Golden Touch Group. CFO John Bang of Jaclyn praised First Citizens for their strategic partnership and expertise. Brendan Chambers, Head of Middle Market Banking at First Citizens, emphasized the bank's commitment to supporting Jaclyn's growth. Managing Director Sarah Warren highlighted the long-standing relationship between First Citizens and Jaclyn. The bank's Middle Market Banking division offers a variety of financial solutions to midsize clients.

Positive

• First Citizens Bank provided $31.5 million in financing.
• The new warehouse and distribution center spans over 233,000 square feet.
• Facility will serve as new West Coast hub for Jaclyn and affiliates.
• Strengthens 25-year banking relationship between First Citizens and Jaclyn.
• First Citizens' Middle Market Banking offers diverse financial solutions to midsize clients.
• Jaclyn has strong connections with national retailers.
• Finance deal supports Jaclyn's strategic business growth.

Negative

• Large financing amount ($31.5 million) may increase Jaclyn's debt burden.
• Dependence on the new distribution center could pose operational risks if issues arise.
• Potential market risks associated with the fashion retail industry could impact future performance.

News Market Reaction – FCNCA

-1.93%

1 alert

-1.93% News Effect

On the day this news was published, FCNCA declined 1.93%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

RALEIGH, N.C., May 29, 2024 /PRNewswire/ -- First Citizens Bank today announced that its Middle Market Banking business provided $31.5 million in financing to national fashion retailer Jaclyn LLC for the purchase of a newly constructed industrial warehouse and distribution center in Southern California.

The warehouse comprises more than 233,000 square feet and will serve as the new West Coast shipping and distribution center for Jaclyn and its affiliated companies of the Golden Touch Group, providers of merchandise and services to retailers and manufacturers.

"We have a long-established history partnering with First Citizens on strategic ventures that add value to our business," said John Bang, CFO of Jaclyn and Golden Touch. "The solutions-driven approach of the teams at First Citizens delivers expertise, agility and thoroughness to the financing process."

"We appreciate the opportunity to support Jaclyn and Golden Touch's purchase of a new distribution center with owner occupied real estate financing, a core capability of our Middle Market Banking business," said Brendan Chambers, Head of First Citizens Middle Market Banking.

"Jaclyn and Golden Touch are reputable brands and operators who have strong track records and valuable connections with many well-known national retailers," said Sarah Warren, Managing Director at First Citizens. "We're pleased to strengthen our 25-year banking relationship with them through this financing."

First Citizens Middle Market Banking delivers a range of financial solutions to midsize clients through a relationship banking model. The business offers deposit solutions, loans, treasury services and other banking products to manufacturers, distributors and a wide variety of service industries.

About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in Raleigh, N.C., First Citizens has built a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens offers an array of general banking services including a network of more than 500 branches and offices in 30 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; innovation banking serving businesses at every stage; and a nationwide direct bank. Parent company First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $200 billion in assets. Discover more at firstcitizens.com.

MEDIA RELATIONS:
Lexa Tutela Losey
212-461-5305
Lexa.tutela@firstcitizens.com 

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SOURCE First Citizens Bank

FAQ

What is the amount of financing provided by First Citizens Bank to Jaclyn?

First Citizens Bank provided $31.5 million in financing to Jaclyn.

What will the new warehouse and distribution center be used for?

The new warehouse and distribution center will serve as the West Coast hub for Jaclyn and its affiliates.

How large is the new industrial warehouse and distribution center?

The new warehouse and distribution center spans over 233,000 square feet.

Who praised First Citizens Bank for their strategic partnership?

John Bang, CFO of Jaclyn and Golden Touch, praised First Citizens for their strategic partnership.

What is the role of First Citizens' Middle Market Banking division?

First Citizens' Middle Market Banking division offers deposit solutions, loans, treasury services, and other banking products to midsize manufacturers, distributors, and service industries.

How long has the banking relationship between First Citizens and Jaclyn been?

The banking relationship between First Citizens and Jaclyn has been 25 years.