WFCF Closes $100 Million Term Loan for RadioShack
RadioShack Corp. announced that it has closed a new $100 million term loan through Wells Fargo Capital Finance, part of Wells Fargo & Company. 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.
RadioShack is a national retailer of innovative mobile technology products and services, as well as products related to personal and home technology and power supply needs.