First-Lien Debt Recapitalizes the Company to Meet Future Growth Opportunities
NEW YORK — November 10, 2014 — Praesidian Capital (Praesidian), a leading provider of senior and subordinated debt for small and mid-sized companies, announced today it provided $7.45 million in first-lien debt for House of Television Rentals, Inc. (HOTV) to recapitalize the company.
Headquartered in Jamestown, NY, HOTV operates 12 stores in western New York and northwestern Pennsylvania. Founded in the 1970s, HOTV transitioned into a rent-to-own (RTO) business model in the mid 1980s. Today, HOTV customers can select from a broad range of merchandise including appliances, electronics, furniture, and accessories.
The RTO business model first sprang up in the 1960s and over time has grown to include three million customers in 8,000 stores across the U.S., explained Kane Brink, HOTVs owner. We see continued growth possibilities in our target market in the Northeast. With a solid customer base and experienced buyers and store operators, we intend to meet our strategic objectives over the next few years. We are very glad to have found a solid, strategically-focused financial partner in Praesidian Capital.
Glenn Harrison, Partner of Praesidian Capital, stated, We are pleased to work with Kane and his entire organization in a unique retail category that serves an important and often overlooked consumer niche. We see interesting opportunities for HOTV in the months and years to come.
About House of Television Rentals, Inc.
House of Television Rentals, Inc. was founded some 30 years ago in Jamestown, NY near the Pennsylvania border to meet the needs of consumers who wanted to acquire household goods without incurring debt. Today, the company operates 12 stores in and around its Jamestown headquarters and in northwestern Pennsylvania that serve more than 3,800 customers. Its merchandise includes appliances, electronics, furniture and accessories.
About Praesidian Capital
Praesidian Capital is an innovative private investment firm focused on providing senior and subordinated debt along with growth capital to private lower middle market businesses in the United States, United Kingdom, Germany, and selectively in Northern Europe. Praesidian invests in established, small and mid-sized companies often in connection with management buyouts, recapitalizations and refinancings. Based in New York City with an office in London, Praesidian manages nearly $1 billion in committed capital. For more information, visit www.praesidian.com.
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