L.O.T.W. #143 - Lulu's Fashion Lounge Hits the Runway with New ABL Revolver
The new revolving facility from White Oak Commercial Finance replaces Lulus’ legacy Bank of America line, reflecting a shift toward a more flexible, non-bank lending partner
In August 2025, Lulu’s Fashion Lounge Holdings closed a new $20 million asset-based revolving credit facility with White Oak Commercial Finance, providing the company with a more flexible and liquidity-friendly capital structure as it executes on its strategic growth priorities. The 2025 Credit Agreement also includes a $5 million uncommitted accordion and a $1 million LC sublimit, giving Lulu’s incremental borrowing capacity as working-capital needs evolve. The facility carries a three-year term, maturing August 14, 2028.
At closing, Lulu’s used proceeds to retire roughly $6 million outstanding under its prior Bank of America credit agreement and now carries $10 million drawn on the new revolver. The move toward a non-bank ABL provider underscores the company’s emphasis on enhanced liquidity, operational headroom, and covenant flexibility.
👓At a Glance
Borrower: Lulu’s Fashion Lounge
Lender: White Oak Commercial Finance
Deal Size: $20 million with $5 million uncommitted accordion
Structure: Asset based revolving loan
Rate: Variable, 30-day SOFR + 3.95%
Term: 36 months
Use of Proceeds: Repay outstanding revolver and support general corporate purposes
Source: Press Release
📷Borrower Snapshot
Sector: Consumer Discretionary
Subsector: Specialty Retail
Ownership: Public NASDAQ - LVLU
Commercial Stage: Revenue generating, LTM EBITDA (-)
Business Overview: Lulu’s Fashion Lounge is a digitally native, women’s apparel brand offering “attainable luxury” across dresses, occasion wear, and everyday fashion. The company operates a data-driven, test-and-scale merchandising model that enables rapid product iteration, efficient inventory turns, and strong gross margins relative to traditional retail peers. While Lulu’s sells predominantly through its e-commerce platform, it has expanded into select wholesale and marketplace channels to broaden reach and diversify revenue. The business targets fashion-forward consumers seeking premium aesthetics at accessible price points, supported by a loyal customer base and a significant social media presence.
⚙️Structure & Terms
Source: SEC 8-K
Commitment:
$20 million
$5 million uncommitted accordion
Borrowing Formula:
90% of Eligible Card Receivables
90% of Eligible Wholesale Accounts
85% of Eligible Inventory (based on most recent appraisal)
*Structure includes a Increased Inventory Availability Period which permits additional inventory based borrowings up to lesser of $1.750 million and 5% of NOLV of eligible inventory
Maturity: August 14, 2028
Collateral: First priority all asset lien
Rate: Variable, 30-day SOFR +3.95%
Fees:
Commitment Fee - disclosed in fee letter
Make-whole Fee (prepayment fee) 3% of revolver commitments if terminated 1st anniversary, 2% if terminated in months 13-24, 1% if terminated thereafter
Unused Line Fee - 0.50%
Monthly Collateral Monitoring Fee - $5k
Increased Inventory Availability Fee - $25k
Financial Covenant:
Min. Excess Revolver Availability - greater of (i) $4 million, and (ii) 20% of the revolver commitment