Live Ventures Announces Closing of $24 Million Loan Facility at Subsidiary Vintage Stock
8:00 am ET June 8, 2018 (Globe Newswire)
Live Ventures Incorporated (Nasdaq:LIVE), a diversified holding company, announced today that its subsidiary, Vintage Stock, Inc., refinanced its prior second lien term loan and closed a senior secured term loan with Comvest Credit Partners.
The new loan significantly reduces the company's interest expense, resulting in a savings of approximately $1.75 million during the first year of the new loan. Since the interest rate on the new facility decreases as leverage decreases, the annual interest savings are expected to increase even further as Vintage Stock's debt decreases. Live Ventures did not issue any shares, warrants, or options in connection with this transaction.
Simultaneous with the closing of this transaction, and in an effort to further reduce debt at Vintage Stock, Live Ventures contributed approximately $4.0 million in cash as additional equity to Vintage Stock. In addition, Vintage Stock amended its revolving loan facility with Texas Capital Bank, who is remaining as a lender to Vintage Stock, to reduce the interest rate on borrowed funds by 0.50%.
"We are excited to have closed this new term loan facility and believe it will significantly improve the overall bottom line of our company," said Jon Isaac, CEO of Live Ventures Incorporated.
"Comvest is very pleased to provide financing to Vintage Stock. Vintage Stock's ability to produce consistent results in an evolving retail environment over the past several years is quite remarkable and is attributable to their strong management team and operations. We look forward to a long relationship with Vintage Stock," said Jason Gelberd, Partner at Comvest.
Venable LLP served as legal advisor for the transaction and Capstone Headwaters was the sole financial advisor.
For further details, the company intends to file a Current Report on Form 8-K with the Securities and Exchange Commission (SEC), which can be found on its website, www.sec.gov.
A SENSE OF ACCOMPLISHMENT IS WAY BETTER THAN A SENSE OF ENTITLEMENT - SP
