RadioShack sets talk on $585 million in ABL revolvers with launch

By Sara Rosenberg

New York, Nov. 5 - RadioShack Corp. released price talk on its $585 million in five-year senior secured ABL revolving credit facilities in connection with its Tuesday bank meeting, according to a market source.

The $535 million tranche is talked with a grid of Libor plus 200 basis points to 250 bps, based on availability, and a 50 bps unused fee, and the $50 million first-in-last-out tranche is talked at Libor plus 400 bps with no grid, the source said.

The company's $835 million credit facility also includes a $250 million secured term loan that is not in market since it was placed with one lender, the source added.

GE Capital Markets, CIT Corporate Finance, RBS Citizens and Salus Capital Partners are leading the financing.

Proceeds will be used to refinance the company's existing $450 million ABL credit facility, $75 million of term loans and $100 million second-lien term loan.

Closing is expected this quarter.

RadioShack is a Fort Worth-based retailer of mobile technology products and services and products related to personal and home technology and power supply needs.

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