Daily News: February 19, 2013

WFCF, BofA Increase Orchard Supply Hardware ABL Facility

Orchard Supply Hardware Stores provided updates on the company’s efforts to refinance or modify its term loan debt and otherwise work to improve its capital structure. Some of the company’s updates include:

  • The company expanded its existing senior secured credit facility with Wells Fargo Capital Finance and Bank of America increasing total borrowing capacity to $145 million through the addition of a $17.5 million last-in-last-out supplemental term loan tranche.

  • Orchard had cash and available credit of $40 million, including $32 million available to borrow on the senior secured credit facility. This liquidity will be used for general working capital purposes, including paying vendors in the ordinary course of business as part of the company’s customary spring inventory build-up.

  • The company obtained a waiver from its current term loan lenders related to compliance with the leverage ratio covenant for the fiscal quarter ended February 2, 2013, and the fiscal quarter ending May 4, 2013, which means that the next applicable measurement date for the leverage covenant is August 3, 2013, subject to the company’s continued compliance with the terms and conditions set forth in the waiver.

    Mark Baker, president and chief executive officer, stated, “As we begin 2013, we remain committed to our repositioning strategy. We have taken a number of steps in the past year to drive long-term improvement in Orchard’s operating results and to strengthen our financial position. We are very pleased to have expanded our credit facility, as planned, and improved our financial flexibility, both of which provide additional liquidity as we enter our peak spring selling season.”

    Orchard Supply Hardware Stores Corporation operates neighborhood hardware and garden stores focused on paint, repair and the backyard.

    Previously on abfjournal.com:

    Orchard Supply Closes $127.5MM With WFCF, Bank of America, Thursday, October 18, 2012