Cherokee to Issue Notes to Help Finance Buyout

Cherokee Group plans to issue $93 million in notes to help finance an investor group’s pending $174-million buyout of Cherokee, a Sunland apparel and shoe concern.

The investor group, Green Acquisition, was formed by three top Cherokee executives and Deutschman & Co., a Los Angeles investment firm. The group is paying $14 a share in cash and securities for Cherokee’s stock.

In a filing with the Securities and Exchange Commission, Cherokee said the notes would mature in 1999. Separately, Green filed plans with the SEC to issue 60,000 non-voting common shares--worth $600,000--that also would help finance the transaction.