August 4, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — Frederick's of Hollywood Group Inc. (AMEX: FOH) said it has entered into a financing agreement, which provides for a $7 million term loan through Hilco Brands, LLC and its partner Infinity FS Finance I, LLC.

Frederick's said it used proceeds from the loan to repay a $2 million bridge loan and that the balance will be available to the company as additional working capital.

Thomas Lynch, Frederick’s CEO, said that the closing of the loan, “…caps a multi-step process to recapitalize the company in 2010.”

Under the terms of the loan, one-half of the principal amount and accrued interest of the term loan matures on each of July 30, 2013 and July 30, 2014. The term loan bears interest at a fixed rate of 9% payable quarterly in arrears, and an additional 6% in payment-in-kind interest that accrues and compounds annually.

The term loan is secured by a first priority security interest in the company's intellectual property and a second priority security interest in substantially all of the company's other assets.

New York-based Frederick's of Hollywood Group conducts its business through its multi-channel retail division and wholesale division. Through its multi-channel retail division, Frederick's primarily sell women's intimate apparel, swimwear and related products under its proprietary Frederick's of Hollywood brand through 126 specialty retail stores nationwide, a catalog and an online shop.

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