Vintage Stock, a subsidiary of Live Ventures, refinanced its prior second lien term loan and closed a $24 million 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. 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 million in cash as additional equity to Vintage Stock.
Vintage Stock also amended its revolving loan facility with Texas Capital Bank, which remains 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.
Venable served as legal advisor and Capstone Headwaters as the sole financial advisor on the transaction.
Live Ventures 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. Vintage Stock, its entertainment retailer subsidiary, sells new and pre-owned movies, classic and current generation video games and systems, music on CD & LP, collectible comics, books, toys and more.
Comvest Credit Partners focuses on providing flexible financing solutions to middle-market companies.
