(Filed Under Financial and General Interest News). Frederickâs of Hollywood Group Inc. said it has entered into a financing agreement which provides for a $7 million term loan through Hilco Brands, LLC (an affiliate of Hilco Consumer Capital, LLC) and its partner Infinity FS Finance I, LLC (an affiliate of Infinity FS Brands, LLC). Proceeds from the term loan were used to repay the companyâs $2 million bridge loan and the balance will be available to Frederickâs as additional working capital.
âWe are pleased to announce the closing of this new $7 million term loan, which caps a multi-step process to recapitalize the company in 2010. As a result of these efforts, we have effectively established a solid foundation from which to further implement our strategy to grow and expand Frederickâs of Hollywood into a global lifestyle brand,â said Thomas Lynch, chairman and chief executive officer of the company.
One-half of the principal amount and accrued interest of the term loan matures on each of July 30, 2013 and July 30, 2014. The term loan bears interest at a fixed rate of 9 percent payable quarterly in arrears, and an additional 6 percent in payment-in-kind interest that accrues and compounds annually. The term loan is secured by a first priority security interest in the companyâs intellectual property and a second priority security interest in substantially all of the companyâs other assets.
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