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Gordon Brothers Finance Company Funds $115MM in Recent Deals

October 19, 2015, 07:57 AM

Gordon Brothers Finance Company (GBFC), a specialty-lending business that originates senior secured Tranche B loans to middle market companies, announced it has funded $115 million of deals, over 90 days between May and August. GBFC was launched in November 2014 as a majority owned portfolio company of BlackRock Capital Investment Corporation. Since its launch, the firm has been actively pursuing new investment opportunities, often in partnership with senior lenders, to help borrowers access additional liquidity. The firm’s relationship with Gordon Brothers Group supports its enhanced research capabilities that drive GBFC’s comfort in extending beyond traditional advance rates, taking second lien positions on existing collateral, and leveraging non-traditional assets, including real estate and intellectual property. The package of loans funded over the 90 days comprises seven transactions to middle-market companies across a range of industries.

In May, GBFC refinanced Asprey’s existing loan and provided a £7.2 million UK term loan, a £3.2 million UK bridge loan and a $3.3 million US term loan, resulting in a total loan amount of $19.2 million USD. Founded in 1781, Asprey designs and manufactures jewelry, silverware, home articles, leather products, timepieces, and gifts. The company is based in London, United Kingdom, with stores in the United Kingdom, the United States, Switzerland, and Japan.

Dutch LLC
Also in May, GBFC upsized the company’s pre-existing loan from $12.5 million to $25 million as part of a capital structure refinancing alongside senior lending partners. The upsizing represented a continuation of GBFC’s relationship with the senior lender that started in early 2013 when GBFC initially worked to provide the Term Loan B. Dutch is a leading wholesale/retail fashion apparel company that owns the Joie, Equipment and Current/Elliot brands.

Brookstone, Inc.
In June, GBFC funded a $15 million term loan and a $2 million seasonal over advance facility to Brookstone, Inc., serving as term loan agent. Brookstone is a multi-channel specialty retailer of consumer electronics and gift items. The financing is secured by accounts receivable, inventory, real estate and intellectual property. The facility was funded in conjunction with a $115 million ABL revolver.

Total Hockey, Inc.
Also in June, GBFC provided Total Hockey, Inc. with a $5 million funded term loan secured by intellectual property, machinery & equipment, inventory and accounts receivable. The facility also provided Total Hockey with the ability to draw an additional $2 million (total facility size $7 million) if certain conditions are met within 12 months of initial closing. The facility was provided in conjunction with a $30 million ABL revolver. Total Hockey is a Missouri-based specialty retailer of brand name sporting goods.

Gordmans, Inc.
Later that month, GBFC provided $7.5 million of a $30.0 million term loan to Gordmans Stores, Inc. in a last-out position to refinance the company’s existing debt. Gordmans is a discount department store chain based in the Midwestern US that offers a wide variety of apparel, accessories, and fragrances, as well as housewares, furniture, bedding, beauty products, footwear, and maternity items.

In late June GBFC upsized the existing Term Loan B by $30 million to $72.5 million. GBFC’s hold increased by $17.5 million, from $7.5 million to $25 million. The company is a full-service discount retailer providing general merchandise, pharmaceuticals, and certain health services through its Shopko, Shopko Hometown, Shopko Express and Rx Care stores. Shopko was founded in 1962 and is headquartered in Green Bay, Wisconsin.

Spec’s Family Partners, LTD.
In August, GBFC funded $15 million of a $30 million secured term loan to Spec’s Family Partners, LTD., a retailer and distributor of liquor, wines, spirits, beers, cigars, and gourmet foods. Founded in 1962, Spec’s operates 155 locations throughout Texas, including Houston (headquarters), Dallas, Austin, San Antonio, and the Rio Grande.

“We are very proud of what we have accomplished over this period and our ability to support borrowers and their senior lenders in gaining additional flexibility. We look forward to continuing to serve the market this way as we pursue growth for GBFC,” stated Patrick Dalton, CEO of Gordon Brothers Finance Company. “I can only thank our team, whose underwriting expertise across all asset classes makes these deals possible,” he added.

Gordon Brothers Finance Company provides asset-based, cash flow and hybrid term loans to middle market companies in need of capital to effect strategic change. GBFC is headquartered in Boston and operates an office in Stamford CT.

Gordon Brothers Finance Company (GBFC) is a specialty-lending business that originates senior secured tranche B loans to middle market companies.  Gordon Brothers Finance Company was launched in November 2014 and is a majority owned portfolio company of BlackRock Capital Investment Corporation, with Gordon Brothers Group owning a minority interest. In connection with its formation, Gordon Brothers Finance Company acquired the majority of the portfolio and team of GB Credit Partners, the investment management affiliate of Gordon Brothers Group.  GBFC and Gordon Brothers Group enjoy an ongoing, exclusive partnership that provides GBFC with access to the deep industry knowledge and valuation expertise of Gordon Brothers Group to pursue its investment strategy.  Gordon Brothers Finance Company is based in Boston, MA.

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