LOS ANGELES, July 6, 2015 /PRNewswire/ -- Great American Capital Partners, LLC (GACP), a wholly owned subsidiary of B. Riley Financial, Inc. (OTCBB: RILY), a diversified provider of financial and business advisory services, has led a $25 million senior secured first-in last-out (FILO) term loan to General Wireless Operations, Inc., doing business as RadioShack. The term loan is part of a $75 million financing package that includes a $50 million asset-based revolving credit facility led by RBC Capital Markets.
Earlier this year, General Wireless, an affiliate of the New York-based investment firm, Standard General LP, acquired certain assets of RadioShack, including more than 1,700 store leases, the RadioShack trademark and other intellectual property. General Wireless intends to rebuild the RadioShack brand around a core product base to be sold alongside Sprint Corp. wireless products.
"This financing is an important component to General Wireless' plans to revitalize the RadioShack brand," said John Ahn, president of GACP. "Transactions of this type also exemplify the increasing demand we're seeing for non-traditional financing solutions from underserved middle-market companies."
"GACP and our affiliates at Great American Group worked closely with General Wireless throughout this process, including performing an inventory appraisal for the 1,733 go-forward stores. This transaction is another example of the highly capable and synergistic Great American Group platform," continued Ahn. "Our insights into RadioShack's asset values enabled us to confidently advise our client as well as structure this loan facility. We look forward to continuing to support General Wireless as it executes its strategic plan to revitalize RadioShack's iconic brand and retail business."
Soo Kim, managing partner and chief investment officer of Standard General, commented: "This financing gives RadioShack the flexibility and support to fully implement its strategic plan. GACP has been an invaluable partner and we plan to build upon our relationship as we take RadioShack to the next level in its strategic development."
RadioShack is a leading national retailer of innovative technology products and services, as well as products related to personal and home technology and power supply needs. RadioShack offers products and services from top national brands, exclusive private brands, and mobile services through its wireless partner Sprint, all within a comfortable and convenient shopping environment. The new RadioShack has over 1,700 company-owned stores and over 600 dealer franchise locations as well as 1,400 Sprint Stores at RadioShack located nationwide.
About Great American Capital Partners, LLC
Great American Capital Partners (GACP) provides senior secured loans to middle market public and private U.S. companies across a wide range of industries. GACP is dedicated to bringing opportunistic and non-traditional capital to companies with strong underlying collateral value. GACP is a wholly owned subsidiary of B. Riley Financial, Inc. (OTCBB: RILY) which provides collaborative financial services and solutions through several subsidiaries, including: B. Riley & Co., LLC, a leading full service investment bank providing corporate finance, research, and sales & trading to corporate, institutional and high net worth individual clients; Great American Group, LLC, a leading provider of advisory and valuation services, asset disposition and auction solutions, and commercial lending services; and B. Riley Capital Management, LLC, an SEC registered Investment Advisor, which includes B. Riley Asset Management, a provider of investment products to institutional and high net worth investors, and B. Riley Wealth Management (formally MK Capital Advisors), a multi-family office practice and wealth management firm focused on the needs of ultra-high net worth individuals and families. B. Riley Financial, Inc. is headquartered in Los Angeles with offices in major financial markets throughout the United States and Europe. For more information on B. Riley Financial, Inc. visit www.brileyfin.com.
For More Information:
John Ahn, President
Great American Capital Partners
Kathy Tran, Vice President, Marketing
B. Riley & Co.
SOURCE Great American Capital Partners, LLC