Great American Capital Partners has led a USD25 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 USD75 million financing package that includes a USD50 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 revitalise the RadioShack brand," says 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.
“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 revitalise RadioShack's iconic brand and retail business."
Soo Kim, managing partner and chief investment officer of Standard General, says: "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."
