Fingerhut Direct announced that it has received a $100 million senior secured line of credit comprised of a revolving line of credit secured by inventory and a bridge loan for consumer installment receivables. CIT Business Credit’s Retail Finance Group acted as lead arranger and administrative agent. CIT Business Credit is a unit of CIT Group Inc.
“We are delighted to work with Fingerhut in supporting this acquisition,” said Gary J. Prager, Executive Vice President, CIT Business Credit’s Retail Finance Group. “This transaction reinforces CIT’s commitment to support the catalog and retail industries.”
The new facilities will be used to finance inventory, receivables and working capital. Fingerhut Direct is a start up operation and the financing will enable the business to continue to grow. The first catalog was mailed on November 9, 2002. Six catalogs have been mailed in the first quarter of 2003.
“We are pleased to complete this financing facility,” said Ted Deikel, chief executive officer, “now we can focus on growth and profitability.”