Fingerhut Direct announced today that it has negotiated a $100 million senior secured line of credit comprised of a revolving line of credit secured by inventory and a bridge loan for consumer instalment 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," said Gary J. Prager, Executive Vice President, CIT Business Credit's Retail Finance Group. "This transaction reinforces CIT's commitment to support the catalogue 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 catalogue was mailed on 9 November 2002. Six catalogues have been mailed in the first quarter of 2003.
