LOS ANGELES, April 22, 2015 /PRNewswire/ -- Great American
Capital Partners, LLC (GACP), a wholly owned subsidiary of
B. Riley Financial, Inc. (OTCQB: RILY), a leading provider
of diversified financial and business advisory services, has
entered into an agreement with Hancock Fabrics, Inc. (OTCQB: HKFI)
to provide a $17.5 million senior
secured first-in last-out (FILO) term loan facility. GACP's term
loan was in conjunction with a new five-year $100 million asset-based revolving credit
facility from Wells Fargo Bank, N.A., which replaces Hancock's
existing $100 million facility.
Founded in 1957, Hancock Fabrics is one of the largest specialty
retailers of fashion and home decorating fabrics and sewing
accessories in the United States.
Hancock Fabrics used the proceeds from the new credit facility to
extinguish the amounts outstanding under its existing loan
agreement, as well as to pay related fees and expenses. The new
facility extends maturities and provides Hancock with additional
liquidity and flexibility to execute its store relocation strategy
designed to enhance store performance and drive sustainable
long-term growth.
"Great American Group (Great American) affiliates have worked
closely with Hancock Fabrics in various capacities over the last
several years, and this transaction marks another milestone in our
long-term relationship," said Stuart
Armstrong, chief investment officer of GACP. "Together, we
have a deep understanding of Hancock's operations and assets,
having provided them with inventory appraisals, assisting in store
closing programs, as well as acting as administrative agent on its
prior term loan facility. Great American's longstanding
relationship and insights into Hancock's asset and collateral
values enabled us to quickly and confidently structure this
deal."
John Ahn, president of GACP,
added: "The transaction also marks the first investment by GACP
since our launch earlier this month, which reflects the significant
opportunity to provide underserved middle market companies like
Hancock with non-traditional and creative financing solutions. It
also underscores B. Riley Financial's powerful origination platform
to source proprietary opportunities through our deep industry
relationships and network of more than 200 financial
professionals."
Steve Morgan, president and CEO
of Hancock Fabrics, commented: "Great American's sound guidance and
timely execution by their team over the years have kept us on a
solid course. We look forward to building upon our relationship and
working with them to execute our many initiatives."
B. Riley Financial launched GACP in April
2015. GACP focuses on providing asset-based debt
opportunities to lower middle market companies. GACP utilizes the
wide array of diversified financial and business advisory services
provided by the B. Riley Financial platform, which includes a
network of more than 200 finance professionals for proprietary deal
flow sourcing and in-house valuation and appraisals expertise.
About Hancock Fabrics, Inc.
Hancock Fabrics, Inc. (OTCQB: HKFI) is committed to being the
authority in fabric, sewing and crafts, serving creative
enthusiasts with a complete selection of fashion and home
decorating textiles, sewing accessories, needlecraft supplies and
sewing machines. The company currently operates 262 retail stores
in 37 states and an Internet store at www.hancockfabrics.com.
About Great American Capital Partners, LLC
Great American Capital Partners provides senior secured loans and
second lien secured loan facilities to middle market public and
private U.S. companies.
Great American Capital Partners, LLC is part of B. Riley
Financial, Inc. (OTCQB: RILY) which provides collaborative
financial services and solutions through several subsidiaries,
including: B. Riley & Co., LLC, a leading full service
investment bank providing corporate finance, research, and sales
& trading to corporate, institutional and high net worth
individual clients; Great American Group, LLC, a leading provider
of advisory and valuation services, asset disposition and auction
solutions, and commercial lending services; B. Riley Asset
Management, LLC, a provider of investment products to institutional
and high net worth investors, and B. Riley Wealth Management, a
division of B. Riley Capital Management, LLC, a multi-family office
practice and wealth management firm focused on the needs of
ultra-high net worth individuals and families. B. Riley Financial,
Inc. is headquartered in Los
Angeles with offices in major financial markets throughout
the United States and Europe. For more information on B. Riley
Financial, Inc. please visit www.brileyfin.com.
For More Information:
John Ahn
President
Great American Capital Partners
jahn@gacapitalpartners.com
310-689-2215
Media Inquiries:
Kathy Tran
Vice President, Marketing
B. Riley & Co.
ktran@brileyco.com
310-689-2228
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SOURCE Great American Capital Partners, LLC