Pathlight Capital Serves as Documentation Agent on $425MM SPV ABL Facility and $120MM Retail Inventory ABL Facility for The Aaron's Company

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Oct 21, 2024, 08:00 ET

BOSTON, Oct. 21, 2024 /PRNewswire/ -- Pathlight Capital LP ("Pathlight" or "Pathlight Capital") announced it is serving as the Documentation Agent on a $425,000,000 SPV ABL facility ("SPV ABL") and $120,000,000 retail inventory ABL facility ("Retail ABL") for The Aaron's Company, Inc. ("Aaron's", or the "Company"), an omni channel provider of lease-to-own ("LTO") and retail purchase solutions of furniture, consumer electronics, and home appliances across its brands: Aaron's, BrandsMart U.S.A, BrandsMart Leasing, and Woodhaven.

Proceeds from the facilities were used to finance the take private of the Company by IQVentures Holdings and to fund ongoing working capital needs of the business.

"It was a pleasure working with Pathlight on this transaction," said Cory Miller, President of IQVentures. "They were a thoughtful partner throughout the process and spoke confidently to provide debt in different parts of the capital structure."

Kenny Smith, Managing Director at Pathlight said, "The Pathlight team is thrilled to help support IQVentures in this transaction. Cory and his team have a strong vision for the continued legacy of Aaron's. Further, we are appreciative of the opportunity to work with Second Avenue Capital Partners, as Agent of the Retail ABL facility, a group we have known and respected for many years."

"This transaction takes place at the intersection of two industries Pathlight knows very well, retail and specialty finance," added Tyler Harrington, Managing Director at Pathlight.

About Pathlight Capital

Pathlight Capital is a private credit investment manager dedicated to meeting the needs of companies that operate across a broad range of industries by providing asset-based loans secured on a first or second lien basis against tangible and intangible assets. Pathlight aims to provide creative financing solutions to allow management teams to access incremental liquidity for the purposes of funding working capital, debt refinancings, growth, acquisitions, dividends and turnaround strategies. For more information, please visit www.pathlightcapital.com.

About The Aaron's Company

Founded in 1955, Atlanta-based Aaron's offers lease-to-own and retail purchase solutions of appliances, electronics, furniture, and other home goods, through its Company-operated and franchised stores across the US and Canada, as well as its e-commerce platform. In addition to its namesake banner, the company's brands include BrandsMart U.S.A., BrandsMart Leasing, and Woodhaven, a furniture manufacturing division. For more information, please visit www.aarons.com and www.brandsmartusa.com.

About IQVentures

Headquartered in the Columbus, Ohio metropolitan area, IQVentures invests in and builds the next generation of technology and companies that help shape the future. IQVentures has substantial experience and expertise in all aspects of consumer and business financing and leverages proprietary technology and shared services to help drive value for the companies it acquires. For more information, please visit www.iqventures.com.

The information presented in this release is the opinion of Pathlight Capital LP and does not reflect the view of any other person or entity. The above is for information purposes and should not be construed as an investment recommendation.

This release may contain an endorsement from an individual who may be supporting or recommending the activities of Pathlight Capital LP. Such individual has not been compensated directly or indirectly by Pathlight Capital LP for the use of his statements. The statements represent endorsement by that individual only and may not represent the experience of all counterparties.

SOURCE Pathlight Capital