HBC has secured a senior secured term loan of $ 150 million from Pathlight Capital LP, which acts as administrative agent.
HBC said in a statement on Wednesday that the term loan was closed and funded on Nov. 25 and will provide additional support for growth initiatives and general working capital needs.
HBC’s portfolio includes Saks Fifth Avenue, Hudson’s Bay and Saks Off 5th. HBC also owns or controls – wholly or with joint venture partners – approximately 40 million square feet of gross leasable area. HBC Properties and Investments, the real estate portfolio and investment division of the company, manages these assets as well as other real estate offerings, including Streetworks Development, its real estate development division.
HBC went private last February and therefore no longer publishes its financial results or its debt. The last time it released a financial report was for the third quarter of 2019. At the end of that period, HBC had $ 2.8 billion in assets under management. Previously, the company had deleveraged itself through certain asset sales, including the sale of its European operations.
“Throughout the pandemic, we have taken steps to carefully manage our cash flow and expenses to support and ensure our businesses can thrive beyond the crisis,” said Michael Culhane, CFO of HBC. “The capital generated by this facility, along with our current liquidity, offers even greater financial flexibility. In addition, this transaction underlines the value of our real estate assets and the significant potential held by each of the companies in our portfolio. “
Pathlight Capital is a private credit investment manager providing asset-based loans, secured on a first or second lien basis against tangible and intangible assets, for a wide range of industries with liquidity needs for different purposes. , be it its working capital, debt refinancing, growth, acquisitions, dividend or turnaround strategies.