GB Merchant Partners Breaks Funding Milestone.
Boston, MA – May 13, 2008 – GB Merchant Partners, the investment management affiliate of Gordon Brothers Group, today announced that its Structured Debt Group has surpassed $250 million in funded commitments.
“This is quite an achievement in a market where access to capital is becoming increasingly scarce due to a recessionary pullback,” said Gary Prager, Managing Director, GB Merchant Partners. “In the current market, borrowers are seeking alternative sources of capital while lenders are looking for value-added partners that can help complete the capital structures needed to support their clients. GB Merchant Partners is uniquely positioned to serve on both fronts.”
Prager further stated that by capitalizing on the 100-plus years of asset valuation experience of its parent company, Gordon Brothers Group, GB Merchant Partners has the benefit of an unrivaled understanding of asset values and business operations. This enables GB Merchant Partners to lend on multiple assets and at higher advance rates.
GB Merchant Partners provides debt financing solutions to private and public middle-market companies in a variety of industry sub-sectors and product categories including:
- Auto (Transportation, Distribution, Assembly)
- Consumer Products
- Retail (Specialty, Soft Goods, Hard Goods and General Merchandise)
- Real Estate
Debt financings (ranging from $10 to $50 million) are typically structured as junior secured loans, “Tranche B” loans or enterprise value loans and can be used by borrowers for working capital to fund long-term growth, execute an acquisition or facilitate a turnaround. Also, general acquisition facilities can be arranged by the seller of a business for the benefit of potential purchasers in order to mitigate financing risk in a divestiture.
Recent debt financings by GB Merchant Partners include a $10 million term facility to Goody’s Family Clothing, a retailer of moderately priced family apparel, and a $25 million term facility to 84 Lumber.
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.