(Filed Under Financial and General Interest News). Frederick’s of Hollywood Group Inc. reported that Salus Capital Partners, LLC, its lender, “increased the FILO (first in last out) Advance credit line portion of the company’s credit facility by $5.0 million to $14.0 million.” Commented chairman and CEO Thomas Lynch, “By increasing the FILO Advance credit line to $14 million, we have greater financial flexibility to work with vendors and invigorate our merchandising strategy, which will play an important role in stabilizing our business.”
Frederick’s paid a stiff price to increase the line from $9 million to $14 million. It gave Salus “a one-time fee of $50,000 in consideration for the Lender’s agreement” to increase the loan amount, and agreed to “an increase in the Lender’s collateral monitoring fee from $4,500 to $12,500 per month,” as well as paying off interest due under previous agreements of $226,330.56.
In a release that accompanied the announcement, Lynch said “We are focused on reconnecting with our customers by returning to our roots and expanding our offering of core intimate apparel products in order to improve sales. Salus Capital has been a strong financial supporter of our business by providing us with a credit facility to support our turnaround strategy over the past year. We are excited to receive their continued vote of confidence with improved terms of our credit facility that provide greater financial flexibility.”
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