RadioShack secures $835M in financing
RadioShack has completed a new financing totaling $835 million. That figure includes a $535 million credit facility led by GE Capital, Corporate Retail Finance and a $250 million secured term loan led by Salus Capital Partners.
This comprehensive new financing will be used to refinance existing debt and provide approximately $200 million of incremental liquidity, which Radio Shack says will help strengthen its balance sheet as it continues plans for an operational turnaround. Radio Shack now has approximately $625 million dollars of debt outstanding. Peter J. Solomon Company acted as financial adviser to RadioShack on the new financing.
"In July, we outlined the five pillars of our turnaround plan: reposition the brand, revamp the product assortment, reinvigorate the store experience, operational efficiency and financial flexibility,” said Joseph C. Magnacca, CEO. “This new financing fulfills the last pillar and provides the financial flexibility and ample runway to turn this business around. We are pleased to have a consortium of leading finance companies partner with us and participate in this new financing.”