GMAC Commercial Finance

GMAC Commercial Finance

March 22, 2006 11:54 ET

The GMAC Commercial Finance Retail Finance Group and CIT Retail Finance Co-Lead a New $220 Million Senior Facility to Goody's Family Clothing, Inc.

QUINCY, Mass.--(CCNMatthews - Mar 22, 2006) -

The GMAC Commercial Finance Retail Finance Group (GMAC CF) and CIT Retail Finance (CIT) announced today that they have entered into a new five-year $220 million revolving loan agreement with Goody's Family Clothing, Inc. and its subsidiaries (Goody's). GMAC CF and CIT acted as co-lead arrangers and also as administrative agent and collateral agent, respectively. LaSalle Retail Finance is the letter of credit issuing agent and Merrill Lynch Capital is the documentation agent. Other prominent participants include AmSouth Bank and Webster Business Credit Retail Finance.

On January 27, 2006, GF Acquisition Corp. completed its acquisition of Goody's with Goody's continuing as the surviving corporation. Goody's Holdings, Inc. is owned in equal parts by GMM Capital LLC and PGDYS Lending LLC. GMM Trust is the managing member of GMM Capital LLC, and Prentice Capital Management, LP is the managing member of PGDYS Lending LLC.

The cash tender offer for the outstanding shares of Goody's was financed with a bridge loan provided by PGDYS Lending LLC and GMM Capital LLC. The revolving credit facility combined with an equity infusion, cash on hand, a term facility and the proceeds from a sale-leaseback transaction refinanced the bridge loan.

According to Gina Milanese, a managing director of Prentice Capital Management and director at Goody's, "We are very pleased to have the support and confidence of two such highly respected financial institutions leading the new credit facility." Ms. Milanese went on to say, "GMAC CF and CIT demonstrated great teamwork and creativity in this process and were flexible in recognizing this unique opportunity. We are very pleased to have this new facility in place and look forward to developing our relationship with all of the financial institutions in our lending group."

Andrew H. Moser, senior managing director of GMAC CF's Retail Finance Group stated, "As members of the prior bank group of Goody's, GMAC CF and CIT both enjoyed a long relationship with the Company, and we have been impressed with its plans for the future. We are pleased to co-lead, along with CIT, this new facility and look forward to working with the Company to exceed its objectives." Moser continued, "We strongly believe in the new Goody's management team and in its ability to execute its plan for the future."

According to Burt Feinberg, managing director for CIT's Retail Finance Group, "This was a great opportunity for CIT and GMAC CF to provide a capital markets solution for GMM Capital and Prentice Capital Management, two equity sponsors that are quite active in the retail industry. Collectively, they bring both operational and financial acumen to Goody's."

About Goody's:

Goody's, headquartered in Knoxville, Tenn., is a retailer of moderately priced family apparel, and currently operates 381 stores in the 21 states of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia and West Virginia.

About GMAC CF's Retail Finance Group:

As part of the Asset Based Lending Division, GMAC CF's Retail Finance Group is recognized nationally as a leader in delivering creative capital solutions relevant to the ever-changing marketplace. During times of strategic growth, change and opportunity, and throughout today's fast-paced business cycles, the Retail Finance Group is the best choice for retailers and consumer product companies with revenues in excess of $35 million.

GMAC Commercial Finance, considered a leader in its segment of the financial services market, provides asset-based lending, equipment finance/leasing, structured finance, factoring and supplier early payment services to a wide variety of middle-market clients in diverse industries. Loan facilities are in the $10 million to $100 million range. With locations in the United States, Canada, Hong Kong, Poland and the United Kingdom, GMAC Commercial Finance is positioned to provide lending services worldwide. Learn more online at www.gmaccf.com.

Headquartered in Southfield, Mich., GMAC CF is part of GMAC Financial Services. Located in Quincy, Mass., the Retail Finance Group can be reached at (617) 376-8150.

About CIT Retail Finance:

CIT Retail Finance, a unit of CIT Business Capital, is a leading provider of financing and capital markets solutions to mid-sized and large retailers. CIT's Retail Finance Group can be reached at (212) 771-1744.

About CIT:

CIT Group Inc. (NYSE:CIT), a leading commercial and consumer finance company, provides clients with financing and leasing products and advisory services. Founded in 1908, CIT has over $60 billion in assets under management and possesses the financial resources, industry expertise and product knowledge to serve the needs of clients across approximately 30 industries worldwide. CIT, a Fortune 500 company and a member of the S&P 500 Index, holds leading positions in vendor financing, factoring, equipment and transportation financing, Small Business Administration loans, and asset-based lending. With its Global Headquarters in New York City, CIT has approximately 6,000 employees in locations throughout North America, Europe, Latin America, and the Pacific Rim. For more information, visit http://www.cit.com.

Contact Information

  • GMAC CF Corporate Communications
    Kevin Hackney, 248-327-9369
    or
    GMAC CF Retail Finance Group
    Peter Erwin, 617-376-8144
    or
    CIT Corporate Communications
    Kelley J. Gipson, 973-422-3235
    or
    CIT Retail Finance
    Ann-Margret Crater, 212-536-9310