BabyUniverse gets another $2 million in debt financing
BabyUniverse Inc., an online retailer of home furnishings as well as products for babies and expectant parents, has received $2 million in debt financing from Lydian Private Bank, a subsidiary of Lydian Trust Co. The financing follows $5 million in debt financing BabyUniverse received in July from Hercules Technology Growth Capital Inc.
“We believe a small debt facility that materially improved the company`s cash liquidity and involves no equity issuance to be ideally suited to our current needs and the furthering of our review of our strategic alternatives," BabyUniverse chairman and CEO John Textor says.
BabyUniverse, No. 235 in the Internet Retailer Top 500 Guide to Retail Web Sites, secured the latest financing with certain assets of affiliates of Wyndcrest Holdings LLC, a company controlled by Textor.
“This is a simple interest-only loan with no principal payments due until July of 2008,” Textor says, adding that BabyUniverse “granted no warrants and pledged no collateral in connection with this financing.”
BabyUniverse reported net income of $103,000 on net sales of $8.88 million for the third quarter ended Sept. 30, 2006, compared to a net loss of $125,000 on net sales of $5.72 million in the year-earlier period. The company’s web sites include BabyUniverse.com, PoshTots.com, PoshLiving.com and ePregancy.com.
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