Los Angeles-based casual wear company Tarrant Apparel Group said that it has signed a commitment letter with Guggenheim Corporate Funding LLC for a $65 million credit facility.

The letter contemplates that the credit facility will consist of an initial term loan of $30 million repay certain existing indebtedness, and fund general operating and working capital needs. A second term loan of $35 million will be available to finance acquisitions, if any, acceptable to Guggenheim.

“This funding will allow us continue to grow our Private Label business, while giving us the flexibility to accelerate our growth through strategic acquisitions that we may identify from time to time,” said Chairman Gerard Guez.

The facility would be secured by a lien on all of the company’s consolidated assets.