Live Ventures Announces Closing of $24 Million Loan Facility at Subsidiary Vintage Stock
June 08 2018 - 8:00AM
Live Ventures Incorporated (Nasdaq:LIVE), a diversified holding
company, announced today that its subsidiary, Vintage Stock, Inc.,
refinanced its prior second lien term loan and closed a senior
secured term loan with Comvest Credit Partners.
The new loan significantly reduces the company’s interest
expense, resulting in a savings of approximately $1.75 million
during the first year of the new loan. Since the interest rate on
the new facility decreases as leverage decreases, the annual
interest savings are expected to increase even further as Vintage
Stock’s debt decreases. Live Ventures did not issue any shares,
warrants, or options in connection with this transaction.
Simultaneous with the closing of this transaction, and in an
effort to further reduce debt at Vintage Stock, Live Ventures
contributed approximately $4.0 million in cash as additional equity
to Vintage Stock. In addition, Vintage Stock amended its
revolving loan facility with Texas Capital Bank, who is remaining
as a lender to Vintage Stock, to reduce the interest rate on
borrowed funds by 0.50%.
“We are excited to have closed this new term loan facility and
believe it will significantly improve the overall bottom line of
our company,” said Jon Isaac, CEO of Live Ventures
Incorporated.
“Comvest is very pleased to provide financing to Vintage
Stock. Vintage Stock’s ability to produce consistent results
in an evolving retail environment over the past several years is
quite remarkable and is attributable to their strong management
team and operations. We look forward to a long relationship
with Vintage Stock,” said Jason Gelberd, Partner at Comvest.
Venable LLP served as legal advisor for the transaction and
Capstone Headwaters was the sole financial advisor.
For further details, the company intends to file a Current
Report on Form 8-K with the Securities and Exchange Commission
(SEC), which can be found on its website, www.sec.gov.
About Live Ventures
Live Ventures Incorporated, originally incorporated in 1968, is
a diversified holding company with several wholly owned
subsidiaries and a strategic focus on acquiring profitable
companies that have demonstrated a strong history of earnings
power. Through its subsidiary, Marquis Industries, the company
operates as a specialty, high-performance yarns manufacturer and
hard-surfaces re-seller. Marquis Industries, which is a top-10
high-end residential carpet manufacturer in the United States,
utilizes its state-of-the-art yarn extrusion capacity to market
monofilament textured yarn products to the artificial turf
industry. Marquis is the only manufacturer in the world that can
produce certain types of yarn prized by the industry. Through its
subsidiary Vintage Stock, an award-winning entertainment retailer,
the company sells new and pre-owned movies, classic and current
generation video games and systems, music on CD & LP,
collectible comics, books, toys, and more. Vintage Stock, through
its stores and website, ships product worldwide directly to the
customer's doorstep. Through its subsidiary ApplianceSmart,
the company sells new major household appliances in the United
States through a chain of company-owned retail stores operating
under the name ApplianceSmart®.
About Comvest Credit Partners
Comvest Credit Partners focuses on providing flexible financing
solutions to middle-market companies. Comvest Credit Partners
provides senior secured, unitranche, second lien, and mezzanine
capital as well as equity co-investments. Comvest Credit Partners
lends to sponsored and non-sponsored companies, in support of
refinancings, growth capital, acquisitions, buyouts, and
recapitalizations. Credit facilities typically range from $20
million to $200 million for companies with revenues greater than
$15 million. For more information, please visit Comvest
Credit Partners’ website at http://comvest.com.
Forward-Looking and Cautionary Statements This
press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of
1995. In accordance with the safe harbor provisions of this
Act, statements contained herein that look forward in time
including those statements relating to interest expense savings,
involve risks and uncertainties that may affect the company’s
actual results. These forward-looking statements can be identified
by terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar
statements. Live Ventures may also make written or oral
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (the “SEC”) on Forms 10-K, 10-Q
and 8-K, in its annual report to stockholders, in press releases
and other written materials and in oral statements made by its
officers, directors or employees to third parties. There can be no
assurance that such statements will prove to be accurate and there
are a number of important factors that could cause actual results
to differ materially from those expressed in any forward-looking
statements made by the company, including, but not limited
to, plans and objectives of management for future operations
or products, the market acceptance or future success of our
products, and our future financial performance. The company
cautions that these forward-looking statements are further
qualified by other factors including, but not limited to, those set
forth in the company’s Annual Report on Form 10-K, as amended, for
the fiscal year ended September 30, 2017 (available
at http://www.sec.gov). Live Ventures undertakes no obligation
to publicly update or revise any statements in this release,
whether as a result of new information, future events, or
otherwise.
Contact:Live Ventures Incorporated Tim Matula, Investor
Relations (425) 836-9035 tmatula@live-ventures.com
http://live-ventures.com Source: Live Ventures
Incorporated
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