Great American Capital Partners and Wells Fargo Bank have entered into an agreement with electronics retailer hhgregg to provide a $80 million debtor-in possession 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.”
GACP, a division of B. Riley Capital Management, originates and underwrites senior secured loans across a wide array of industries.
Related stories:
Wells Fargo, GACP Provide $80MM DIP for hhgregg