Great American Capital Partners Provides $30 Million to hhgregg, Inc. as part of Wells Fargo-led Financing
March 23 2017 - 9:00AM
Great American Capital Partners, LLC (“GACP”), a wholly owned
subsidiary of B. Riley Financial Inc. (NASDAQ:RILY), and Wells
Fargo Bank have entered into an agreement with hhgregg, Inc. (the
“Company”) to provide a $80 million debtor-in possession (“DIP”)
financing facility. Wells Fargo led the financing, which consists
of a $50 million revolving credit facility provided by Wells Fargo
and a $30 million term loan facility provided by GACP.
On March 6, 2017, the Company filed for Chapter 11 and the DIP
facility. The DIP facility combined with the Company’s cash from
operations is intended to provide sufficient liquidity during the
Chapter 11 case to support its continuing normal business
operations and minimize disruption.
“We have conducted an extensive review of alternatives and
believe pursuing a restructuring through Chapter 11 is the best
path forward to ensure hhgregg’s long-term success,” said Robert J.
Riesbeck, hhgregg’s President and CEO. “Through strategic steps and
our new banking partners, we plan to come out of this debt free and
more agile as we serve our valued customers and vendor partners,
and continue to be a dominant force in appliances, electronics and
home furnishings.”
“Our industry experience and deep valuation expertise allowed us
to execute this transaction on a very tight timeframe,” said Robert
Louzan, Managing Director of GACP. “We are happy to partner with
hhgregg’s management team and to play a role in facilitating their
restructuring efforts.”
About hhgregg
hhgregg is an appliance, electronics and furniture retailer that
is committed to providing customers with a truly differentiated
purchase experience through superior customer service,
knowledgeable sales associates and the highest quality product
selections. Founded in 1955, hhgregg is a multi-regional retailer
currently with 220 stores in 19 states that also offers
market-leading global and local brands at value prices nationwide
via hhgregg.com.
About Great American Capital Partners, LLC
GACP, a division of B. Riley Capital Management, an SEC
Registered Investment Advisor and a wholly owned subsidiary
of B. Riley Financial, Inc. (NASDAQ:RILY), originates and
underwrites senior secured loans across a wide array of industries.
GACP is dedicated to providing opportunistic and responsive capital
to the underserved middle market.
B. Riley Financial, Inc. is a publicly traded, diversified
financial services company which takes a collaborative approach to
the capital raising and financial advisory needs of public and
private companies and high net worth individuals. The Company
operates through several wholly-owned subsidiaries,
including B. Riley & Co.,
LLC (www.brileyco.com), Great American Group,
LLC (www.greatamerican.com), and B. Riley Capital
Management, LLC (which also includes B. Riley Asset Management
(www.brileyam.com) and B. Riley Wealth Management,
(www.brileywealth.com). The Company also makes proprietary
investments in other businesses, such as the acquisition
of United Online, Inc. (www.untd.com) in July 2016,
where B. Riley Financial, Inc. is uniquely positioned to
leverage its expertise and assets in order to maximize value.
Great American Capital Partners Contact:
John Ahn
jahn@gacapitalpartners.com
(310) 689-2215
Robert Louzan
rlouzan@gacapitalpartners.com
(203) 663-5101
B Riley Financial (NASDAQ:RILY)
Historical Stock Chart
From Aug 2024 to Sep 2024
B Riley Financial (NASDAQ:RILY)
Historical Stock Chart
From Sep 2023 to Sep 2024