Second Avenue Capital Partners Agents a $120,000,000 Revolving Credit Facility to Support IQVentures Acquisition of The Aaron's Company

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Oct 15, 2024, 08:15 ET

BOSTON, Oct. 15, 2024 /PRNewswire/ -- Schottenstein affiliate Second Avenue Capital Partners ("SACP") announced it is serving as Administrative Agent on a $120,000,000 Senior Secured Revolving Line of Credit for The Aaron's Company, Inc. ("Aaron's" or "the Company"), an industry leader in lease-to-own and purchase solutions for furniture, consumer electronics, home appliances, and more. The new asset-based credit facility, provided by SACP along with Pathlight Capital LP ("Pathlight"), is a critical component of the broader financing package arranged to support the take-private acquisition of Aaron's by IQVentures Holdings, LLC ("IQVentures"), a leading fintech sponsor.

Founded in 1955, Aaron's has been at the forefront of the lease-to-own industry, providing affordable and flexible options for customers to own furniture, electronics, appliances, and other essential household items. With the acquisition of BrandsMart U.S.A. in 2022, Aaron's enhanced their store footprint with a leading appliance and consumer electronics retailer. From a network of more than 1,200 company-operated and franchised stores across the United States and Canada, plus a robust e-commerce platform, Aaron's has helped millions of customers gain access to high-quality products without the burden of traditional credit constraints.

"The Aaron's acquisition was a highly structured transaction, with a dual focus on delivering value to the previous shareholders while positioning the Company to accelerate growth and innovation for the benefit of Aaron's customers," said Cory Miller, President of IQVentures. "To achieve this, we needed a financing partner who understood the nuances of the deal and had the capability and commitment to see it through. SACP proved to be exactly that partner, delivering on their promises and supporting our vision for the future of the Company."

Michael Russell, Managing Director of SACP, spearheaded the underwriting for this credit facility and emphasized that it was a collective effort to close the transaction successfully. "SACP is known for handling complex transactions quickly and efficiently, and we're proud of our ability to work seamlessly with our deal partners," Russell noted. "From the dedicated Aaron's leadership team, to the professionals at IQVentures, as well as the legal and financial advisors and financing partners, closing the Aaron's acquisition was truly a collaborative effort."

The transaction represents SACP's commitment to providing creative and customized lending solutions to companies across various industries. Partnering with IQVentures and Aaron's underscores SACP's dedication to supporting established businesses that offer unique and necessary services to their customers.

"As a firm focused on fostering growth for our clients, we are excited to help usher Aaron's into this new phase of the Company's transformation," said SACP's Managing Director, Michael Sullivan. "We're proud of our track record helping companies like Aaron's access the capital they need to execute their strategic initiatives and continue serving their customers. Our data-driven team adapts to changing deal conditions while ensuring reliable execution every time."

About Second Avenue Capital Partners LLC – Second Avenue Capital Partners, LLC (SACP), a Schottenstein Affiliate, specializes in asset-based loans for the broader retail and consumer products industry. Serving middle-market companies, SACP leverages the experience of retail operators, product merchants, and lenders to deliver customized capital solutions. A unique merchant perspective allows SACP to recognize and unlock value in assets other capital providers often overlook or do not understand. The firm's tailored financial solutions are a vital resource for clients seeking capital to effectuate strategy and achieve financial objectives. Learn more at sacp.com.

About Pathlight Capital - Pathlight provides asset-based loans secured on a first or second lien basis against tangible and intangible assets. Pathlight offers creative financing solutions to allow management teams to access incremental liquidity for the purposes of funding working capital, refinancing, growth, acquisition, dividend and turnaround strategies. For more information, please visit www.pathlightcapital.com.

About The Aaron's Company – Headquartered in Atlanta, The Aaron's Company, Inc. is a leading, technology-enabled, omnichannel provider of lease-to-own and retail purchase solutions of appliances, electronics, furniture, and other home goods across its brands: Aaron's, BrandsMart U.S.A., BrandsMart Leasing, and Woodhaven. Aaron's offers a direct-to-consumer lease-to-own solution through its approximately 1,210 Company-operated and franchised stores in 47 states and Canada, as well as its e-commerce platform. BrandsMart U.S.A. is one of the leading appliance retailers in the country, with 12 retail stores in Florida and Georgia, as well as its e-commerce platform. BrandsMart Leasing offers lease-to-own solutions to customers of BrandsMart U.S.A. Woodhaven is the Company's furniture manufacturing division. For more information, 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.

SOURCE Second Avenue Capital Partners, LLC