Northbrook, IL, August 3, 2010 – Hilco Consumer Capital, LLC, (“HCC”), through its Hilco Brands, LLC unit, and in partnership with Infinity FS Brands, LLC, (“Infinity”) through its Infinity FS Finance I, LLC, affiliate today announced completion of a US$7 million term loan to Frederick’s of Hollywood Group Inc. (NYSE Amex: FOH) (“Frederick’s”). Hilco Brands acted as agent on the transaction.
The loan, which is secured in part by the intellectual property of Frederick’s, including the company’s trade name and trademarks, is being used to repay a USD$2 million bridge loan provided by Wells Fargo Financial and also for general working capital purposes.
One-half of the loan’s principal amount and accrued interest matures on each of July 30, 2013 and July 30, 2014. The loan bears interest at a fixed rate of 9% payable quarterly in arrears, and an additional 6% in payment-in-kind interest that accrues and compounds annually.
Mitchell C. Berk, CEO of Hilco Consumer Capital, a unit of Hilco Trading, LLC, said, “The rich and long history of the iconic Frederick’s of Hollywood brand combined with our ability to recognize value in the intellectual property and the company’s multi-channel distribution, including retail, catalog, e-commerce, wholesale and licensing, made this investment an attractive opportunity for us.”
Bradley W. Snyder, a Managing Partner with Infinity FS Brands, said, “Our company was proud to work in partnership with Hilco in providing additional liquidity to an outstanding company like that of Frederick’s of Hollywood with its long heritage and tremendous consumer awareness.”