Alliance Entertainment Holding, a distributor and wholesaler of the world’s largest in stock selection of music, movies, video games, electronics, arcades, toys and collectibles, closed a new three-year $120 million senior secured asset-based credit facility with White Oak Commercial Finance. This credit facility replaces the company’s revolver with Bank of America.
The new credit facility includes a $120 million asset based revolving credit facility. The revolver will bear interest at a rate of the 30-day SOFR plus 4.5%, borrowings from the facility will primarily be used to retire the existing credit facility, fund working capital needs and provide for general corporate purposes.
“We will be entering 2024 with [lower] borrowing needs so we elected to reduce our line to control costs,” Jeff Walker, CEO and CFO of Alliance Entertainment, said.
“We are now well positioned to continue to execute strategic plans including investments in automating facilities and upgrading proprietary software, improvements which we believe will improve EBITDA and inventory turns,” Bruce Ogilvie, chairman of Alliance, said. “We believe that in combination with our cost-cutting initiatives and reduction in inventory due to improved management, lowering our cost of capital directly improves our competitiveness and increases our ability to deploy capital that drives accretive growth. We are delighted to have the support of White Oak, which shares our long-term vision for Alliance Entertainment with a focus on strategy, operational execution, and financial prudence.”
