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RadioShack closes $835 million five-year ABL facility and term loan
By Susanna Moon
Chicago, Dec. 10 - RadioShack Corp. said it closed a $585 million five-year senior secured ABL credit facility led by GE Capital and a $250 million five-year secured term loan led by Salus Capital Partners, LLC.
The loans will be used to refinance debt and provide about $200 million of incremental liquidity, which will "further strengthen the company's balance sheet as it continues to move forward with its operational turnaround," according to a company press release.
The ABL facility consists of a $535 million revolving line of credit and a $50 million term loan. The facility was arranged and led by GE Capital, Corporate Retail Finance and was syndicated to CIT Corporate Finance and RBS Citizens, NA.
The term loan is a first-in-last-out term loan, which was drawn and funded at closing and carries a rate of Libor plus 400 basis points. The facility is secured by the inventory and accounts receivable of the company's U.S. operations.
The new $250 million secured term loan was led by Salus Capital, with interest at Libor plus 1,100 bps. The term loan was drawn and funded at closing and is secured by a second lien on the assets securing the new ABL credit facility and a first lien on other assets of the company.
The company said it has exited the existing $450 million ABL credit facility and the two accordions totaling $75 million and has retired an existing $100 million second-lien term loan.
With the new financing and the existing $325 million of 6¾% unsecured notes due in 2019, the company has about $625 million dollars of debt outstanding.
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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