GB Merchant Partners Provides $25 Million to 84 Lumber.

Press Release
BOSTON, MA – April 21, 2008 – GB Merchant Partners, the investment management affiliate of Gordon Brothers Group, today announced that it has provided $25 million of a $195 million first lien real estate term loan to an affiliate of 84 Lumber, one of the largest suppliers of building materials to contractors in the U.S. The loan is being used to refinance existing debt.

“This financing package should give 84 Lumber the necessary capital needed to weather the challenging real estate market which has seen a dramatic drop in new housing starts,” said Gary Prager, Managing Director, GB Merchant Partners.

Since its founding in 1956, 84 Lumber has grown to become one of the largest suppliers of building materials to contractors in the U.S. While the company’s primary business is supplying contractors with specialized and professional quality building products at competitive prices, 84 Lumber also serves the do-it-yourself customer. The company operates 413 locations in 38 states with 8 component manufacturing plants.

About GB Merchant Partners
GB Merchant Partners (www.gbmerchantpartners.com), the investment management affiliate of Gordon Brothers Group with over $500 million of capital under management, focuses on private equity, structured loan and secondary debt investments. Equity investments are made through the 1903 Equity Fund, which takes majority and minority equity positions in middle-market retail and consumer products companies. Debt financings, typically structured as junior secured, “Tranche B” or enterprise value loans that range from $10 to $50 million, are made to middle-market companies in the distribution, wholesale, industrial, retail, consumer products and real estate sectors.