Daily News: December 7, 2012

GA Capital Provides $15 Million Term Loan to Hancock Fabrics

GA Capital, a division of Great American Group, which provides senior and junior secured loan facilities to help middle-market businesses meet their financing needs, has closed on a $15 million term loan facility for Hancock Fabrics. GA Capital will act as the administrative agent for the term loan.

“We’ve been impressed with the financial expertise shown by our new partner, GA Capital, throughout this process,” said Hancock Fabrics EVP and CFO Robert Driskell. “With their assistance, along with other recent financing efforts, we’ve been able to enhance our cash and liquidity position and now have more flexibility to execute our operational improvement plans.”

The loan for Hancock Fabrics was completed under the leadership of Stuart Armstrong, who was named president of GA Capital in May. Previously, Armstrong was one of the founders and served as EVP of Tygris Commercial Finance and as president of Tygris Corporate Finance.

“As an integral component of a larger refinancing effort by Hancock Fabrics, we are excited to provide the company additional working capital so it may continue to execute a successful business strategy,” said Armstrong, president of GA Capital.

GA Capital managing director Robert Louzan and assistant vice president Krista Mello were part of the team that put the financing facility in place.

Hancock Fabrics is a specialty retailer of clothing/home fabrics and sewing accessories that operates 262 retail stores in 37 states.

Previously on abfjournal.com:

GE Capital, Others Amend, Close New Hancock Fabrics Facilities, Wednesday, November 21, 2012