Houlihan Lokey Advises Potpourri Group

Transaction: Potpourri Group, Inc.- Northlane Capital Partners

Houlihan Lokey is pleased to announce the successful placement of a $124.1 million credit facility comprising a $10 million revolver and $114.1 million term loan for Potpourri Group, Inc. (Potpourri), a portfolio company of Northlane Capital Partners. The transaction closed on May 22, 2024.

Headquartered in North Billerica, Massachusetts, Potpourri is one of the largest multichannel, direct-to-consumer marketers in the U.S. The company maintains a complementary portfolio of 18 established, nationally recognized brands targeting a core and growing consumer base of middle-income women aged 45 years and older. Potpourri offers a diverse, multi-category assortment of exclusive products, including casual apparel, home and gift, accessories, and specialty products. To reach its customer base, the company utilizes direct mail and e-commerce strategies for existing and prospective buyers based on extensive analytics and forecasting. Through its proprietary, data-driven approach, Potpourri has driven consistent financial performance over the past 15+ years. With 26+ million unique customer names in its database, Potpourri is one of the largest companies in the industry.

Houlihan Lokey's Capital Markets Group served as the exclusive financial advisor and placement agent to Potpourri, assisting the company in arranging, structuring, and negotiating the financing. The Potpourri financing highlights Houlihan Lokey’s ability to run a competitive financing process that was able to meet all of its client’s objectives, including (i) refinancing existing indebtedness ahead of an impending maturity, (ii) providing a material shareholder distribution to existing shareholders, and (iii) improving terms on the company’s new credit facility. This transaction represents the second successful refinancing and dividend recapitalization that Houlihan Lokey has completed for the company and another successful capital raise for Houlihan Lokey’s Capital Markets team.

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