GB Credit Partners Agents $30 Million Senior Secured Term Loan to BrandsMart U.S.A.

Press Release

BOSTON, MA - GB Credit Partners, the investment management affiliate of Gordon Brothers Group, announced today that it has provided a $30 million senior secured term loan to BrandsMart U.S.A.  BrandsMart U.S.A., one of the largest volume-per-store retailers in the United States, is a major retailer of consumer appliances, electronics and housewares.

GB Credit Partners’ due diligence of the company was complemented by its ability to utilize the proprietary research and diligence capabilities of other divisions within Gordon Brothers Group, including Gordon Brothers Group’s Retail Division and DJM Realty.  GB Credit Partners was able to obtain a solid understanding of the collateral value and the company’s business plan in an accelerated timeframe to commit and quickly close the senior secured term loan.  This expedited process has allowed BrandsMart U.S.A. to focus on its business plan rather than its capital structure.

Lawrence Klaff, Managing Director of GB Credit Partners, stated, “We are pleased to partner with BrandsMart U.S.A. by providing a loan that better meets the company’s current needs in order to aid in its continued store operations. BrandsMart’s unique business model is something we value, and we look forward to seeing its continued success for many years to come.”

Michael Perlman, President & CEO of BrandsMart U.S.A., stated, “GB Credit Partners is an ideal partner based on its clear understanding of our needs and ability to rapidly deliver the capital we require. The group’s in-depth knowledge of our market makes all the difference in executing seamless transactions.”

Founded in 1977, BrandsMart U.S.A. carved a niche in the South Florida market by providing top quality merchandise from leading manufacturers at discount prices for more than three decades.  BrandsMart U.S.A. currently provides approximately 2,600 jobs to Florida and Georgia residents.

About GB Credit Partners

GB Credit Partners (www.gbcredit.com), the investment management affiliate of Gordon Brothers Group, originates, structures and invests in private market debt.  Structured debt investments in the form of Senior, Unitranche, Second Lien or Secured Mezzanine loans ranging from $10 to $50 million are made to middle-market companies in need of capital to effect strategic change.  Target industries include aerospace, automotive, commodities, consumer products, forest products, gaming, industrial equipment, manufacturing, real estate, restaurants, retail, and wholesale/distribution.

About BrandsMart U.S.A.

BrandsMart U.S.A. was founded by Robert Perlman with a single store in Miami, Florida.  Headquartered in Hollywood, Florida, BrandsMart U.S.A. currently operates 11 locations including 7 stores in South Florida and 4 in Georgia.  BrandsMart U.S.A. stocks a large selection of televisions, large and small appliances, audio, video and home theater equipment, exercise equipment, car stereo components, tablets and computers, cellular telephones, wellness care, bedding and thousands of accessories.  In addition, BrandsMart U.S.A. is an authorized dealer of everything  sold.  Customers can choose from more than 500 name brands and nearly 50,000 different items, all first-quality direct from the manufacturers.