B. Riley unit borrows $351 million under facilities to fund Bon-Ton buy

By Tali Rackner

Minneapolis, April 25 – B. Riley Financial, Inc. indirect wholly owned subsidiary GA Retail, Inc. borrowed $351 million to fund its portion of the purchase of certain rights to the assets of Bon-Ton Stores, Inc., according to an 8-K filing with the Securities and Exchange Commission.

Specifically, GA Retail borrowed $300 million from Wells Fargo Bank, NA under an amended and restated consent dated April 19 and about $51 million from GACP, II, LP, a fund managed by Great American Capital Partners, LLC.

As previously reported, on April 18, the U.S. Bankruptcy Court for the District of Delaware approved an agreement between Bon-Ton and a joint venture composed of the holders of the company’s 8% second-lien secured notes due 2021 and Great American Group, LLC and Tiger Capital Group, LLC governing the liquidation of the inventory and other assets.

Each of these loans will be repaid from the proceeds after the payment of certain expenses incurred by the joint venture in connection with the sale.

B. Riley is a Los Angeles-based diversified financial services company. Bon-Ton, a York, Pa.-based department store operator, filed bankruptcy on Feb. 4 under Chapter 11 case number 18-10248.

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