RadioShack Announces $100 Million Term Loan
FORT WORTH, Texas, Sept. 27, 2012 /PRNewswire/ -- RadioShack Corp. (NYSE: RSH) announced today that it has closed a new $100 million term loan through Wells Fargo Capital Finance, part of Wells Fargo & Company (NYSE: WFC). The loan is secured by a second lien on the inventory and accounts receivable and other specific assets. The key terms of the transaction include a five-year term, an interest rate of 11% and an optional prepayment structure that allows for $10 million each year without a premium or in entirety with a prepayment penalty.
"We are pleased to have closed on this new term loan with Wells Fargo Capital Finance. This 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," said Dorvin Lively, interim chief executive officer of RadioShack.
About RadioShack Corporation
RadioShack (NYSE: RSH) is a leading national retailer of innovative mobile technology products and services, as well as products related to personal and home technology and power supply needs. RadioShack® offers consumers a targeted assortment of wireless phones and other electronic products and services from leading national brands, exclusive private brands and major wireless carriers, all within a comfortable and convenient shopping environment. RadioShack employs approximately 34,000 knowledgeable and helpful sales experts globally. RadioShack's retail network includes approximately 4,700 company-operated stores in the United States and Mexico, 1,500 wireless phone centers in the United States, and approximately 1,100 dealer and other outlets worldwide. For more information on RadioShack Corporation, please visit www.radioshackcorporation.com; to purchase items online, please visit www.radioshack.com. RadioShack® is a registered trademark licensed by RadioShack Corporation.
SOURCE RadioShack Corp.