Frederick’s Gets $24 Million LoanWednesday, June 6, 2012
Frederick’s of Hollywood Group Inc. on Monday said that it has secured a $24 million loan from Salus Capital Partners LLC in Boston.
The loan replaces the Hollywood lingerie company’s existing debt facilities with Wells Fargo Bank and with Hilco Brands LLC, and will provide the company with capital for general corporate purposes.
Andy Moser, president of Salus Capital Partners, said the lender required first lien on Frederick’s iconic trademark to secure the loan.
“The facility is secured by their inventory and accounts receiveable, as well as by the brand, their intellectual property,” he said. “We are thrilled to partner with Frederick’s and look forward to a long-standing relationship.”
Moser declined to comment on the exact terms of the loan, other than to say it is consistent with similar deals in the marketplace today. The company is expected to release loan details in its upcoming Securities and Exchange Commission filing.
Frederick’s, a once-iconic lingerie brand that has lagged under intense competition, has lost money for the past four years and has hired an investment bank to explore “strategic options” that include a possible sale.