Hancock Fabrics announced that it has entered into an amended and restated loan and security agreement. The new, $100 million senior secured asset-based credit facility matures in November 2016 and replaces the company’s existing revolving credit agreement, which would have matured in August 2013.

GE Capital will serve as working capital agent, issuing bank, and syndication agent. GE Capital Markets acted as sole lead arranger, manager and bookrunner on the working capital facility.

The company also closed a $15 million term loan credit facility, which will mature in November 2016. GA Capital and GE Capital Markets acted as joint term loan lead arranger and joint bookrunner on the term B facility. GA Capital will serve as the administrative agent.

Term B facility lenders are expected to include GE Capital, Apollo Centre Street Partnership and Stone Tower Credit Solutions Fund.

Hancock Fabrics provides fabric and sewing enthusiasts with fashion and home decorating textiles, sewing accessories, needlecraft supplies and sewing machines.

Steve Morgan, president and chief executive officer, commented, “We are encouraged by this ongoing show of support from GE Capital, Corporate Retail Finance as well as our new partner GA Capital. Both of these groups are extremely knowledgeable and experienced in the retail finance arena. This extension and additional capital provides us the time to execute our operational improvement plans as well as the flexibility to retire a significant portion of our subordinated debt.”

“Hancock Fabric is a long-standing customer of ours,” said Jim Hogan, senior managing director of GE Capital, Corporate Retail Finance. “We are pleased to be able to offer a facility for the company which will allow them to continue to execute their strategy.” Hogan continued, “Providing Hancock Fabrics and other middle-market retailers with flexible financing structures as their needs change is critical in today’s challenging environment.”

Previously on abfjournal.com:

GE Corporate Lending Provides Exit Financing to Hancock Fabrics, Monday, August 04, 2008