RadioShack closes $100 million 11% term loan with Wells Fargo

By Toni Weeks

San Diego, Sept. 27 - RadioShack Corp. announced it has closed on a $100 million five-year term loan through Wells Fargo Capital Finance.

According to a press release, the loan is secured by a second lien on RadioShack's inventory, accounts receivable and other assets.

The loan bears interest at 11% and has an optional prepayment structure that allows for $10 million each year without a premium or in its entirety with a repayment penalty.

"This [term loan] largely completes the capital structure strategy we discussed on the second-quarter earnings call, in which we outlined our goal to refinance approximately one-half of the debt maturity coming due in August 2013," interim chief executive officer Dorvin Lively said in a press release.

RadioShack is a Fort Worth-based retailer of consumer electronic goods and services.

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