Pathlight Capital and HBC Announce $150 Million Term Loan Facility

BOSTON, MADecember 2, 2020 — Pathlight Capital LP and HBC have completed a $150,000,000 Senior Secured Term Loan Facility for the company, of which Pathlight serves as the administrative agent. HBC is a holding company of portfolio businesses operating at the intersection of retail and real estate, including a real estate and investments division, HBC Properties and Investments, and three retailers, Saks Fifth Avenue, Hudson’s Bay and Saks OFF 5TH.

The term loan, which was completed and funded on November 25, 2020, will provide additional support for growth initiatives and general working capital purposes.

Michael Culhane, Chief Financial Officer of HBC said, “Throughout the pandemic, we have taken steps to carefully manage our cash flow and expenditures to sustain and help ensure that our businesses can thrive beyond the crisis. The capital generated by this facility, along with our current liquidity, provides even greater financial flexibility. Further, this transaction underscores the value of our real estate assets and the significant potential that lies within each of our portfolio companies. We’re pleased to have worked with Pathlight to complete this facility.”

Mark Twomey, Managing Director of Pathlight Capital commented, “I have followed HBC and its iconic retail businesses for my entire career, so it is both exciting and gratifying for Pathlight to partner with the management team to structure a facility that can provide additional liquidity for the company. We are proud to help bolster the management team's continued efforts to best position HBC for the future.”


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 provides 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 HBC

HBC is a holding company of portfolio businesses that operate at the intersection of retail and real estate. A long-term investor in iconic companies, HBC’s valuable assets span top markets and prime locations across North America.

Among HBC’s portfolio companies are three distinguished retailers: Saks Fifth Avenue, a premier luxury retailer, Hudson’s Bay, Canada’s preeminent multi-category retailer, and Saks OFF 5TH, a leading off-price retailer.

HBC owns or controls, either entirely or with joint venture partners, approximately 40 million square feet of gross leasable area. HBC Properties and Investments, the company’s real estate and investments portfolio business, manages these assets along with additional real estate offerings, including Streetworks Development, its property development division.

Founded in 1670, HBC is North America’s longest continually operating company and is headquartered in Toronto and New York. For more information visit: www.hbc.com.



Media Contacts:

Pathlight Capital

Brittany Kelley

bkelley@pathlightcapital.com


HBC

Nicole Schoenberg

press@hbc.com