Hancock Fabrics secures $100mn revolving credit facility

The Company also closed on a $15 million term loan credit facility (Term B Facility), which will mature in November 2016. GA Capital, LLC and GE Capital Markets, Inc. acted as joint term loan lead arranger and joint bookrunner on the Term B Facility. GA Capital, LLC will serve as the administrative agent. Term B Facility lenders are expected to include General Electric Capital Corporation, Apollo Centre Street Partnership, LP, and Stone Tower Credit Solutions Fund, LP.

Steve Morgan, President and Chief Executive Officer commented, “We are encouraged by this ongoing show of support from GE Capital, Corporate Retail Finance as well as our new partner GA Capital. Both of these groups are extremely knowledgeable and experienced in the retail finance arena. This extension and additional capital provides us the time to execute our operational improvement plans as well as the flexibility to retire a significant portion of our subordinated debt.”

“Hancock Fabric is a long-standing customer of ours,” said Jim Hogan, senior managing director of GE Capital, Corporate Retail Finance. "We are pleased to be able to offer a facility for the Company which will allow them to continue to execute their strategy." Hogan continued, “Providing Hancock Fabrics and other middle market retailers with flexible financing structures as their needs change is critical in today’s challenging environment.”

Hancock Fabrics, Inc. is committed to being the inspirational authority in fabric and sewing, serving creative enthusiasts with a complete selection of fashion and home decorating textiles, sewing accessories, needlecraft supplies and sewing machines.

Hancock Fabrics Inc