Daily News: April 23, 2015

Wells, GACP Finance Hancock Revolver

Great American Capital Partners entered into an agreement with Hancock Fabrics to provide a $17.5 million senior 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, which replaces Hancock’s existing $100 million facility.

“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, said, “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.”

Hancock Fabrics is a specialty retailer of fashion and home decorating fabrics and sewing accessories.