RadioShack Completes New Five-Year Financing Totaling $835M
RadioShack Corporation (NYSE: RSH) announced today that it has completed a new financing totaling $835 million including a $585 million senior secured ABL credit facility led by GE Capital, Corporate Retail Finance and a $250 million secured term loan led by Salus Capital Partners, LLC. This comprehensive new financing will be used to refinance existing debt and provide approximately $200 million of incremental liquidity, all of which will further strengthen the Company's balance sheet as it continues to move forward with its operational turnaround.
Joseph C. Magnacca, chief executive officer, said, "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. 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. With our financing completed and the progress we have made recently on our other pillars, we are focused on delivering a great RadioShack experience for the millions of our customers who choose to