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RadioShack to raise $100 mln through term loan

Sept 27 | Thu Sep 27, 2012 8:55pm EDT

Sept 27 (Reuters) - RadioShack Corp said that it has raised $100 million in a new term loan as the consumer electronics chain looks to refinance and pay down debt.

The loan, carrying an interest rate of 11 percent is to be repaid after five years, the company said in a statement.

It also has an optional prepayment structure that allows for $10 million each year without a premium or in entirety with a prepayment penalty. RadioShack closed the loan through Wells Fargo Capital Finance, part of Wells Fargo & Company.

The once-iconic electronics retailer, whose chief executive stepped down on Wednesday, is desperately trying to revive its flagging fortunes after a series of strategic setbacks.

It reported an unexpected quarterly loss and suspended its dividend in July to help pay down debt, which stood at about $680 million as of June 30.

The company's shares closed at $2.41 on the New York Stock Exchange on Thursday.
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Comments (2)
BenFE wrote:
So, let’s get this straight. 1 Financial “wizard” who helped KMart through banruptcy and his right hand chosen successor, who know NOTHING about running a retail company, tank a successful retail company in 6 years, screwing the employees AND the stockholders to the wall, and the company now has to take out a loan to pay down debt.

Brilliant. The entire BOD needs to be kicked to the curb for allowing this fiasco to happen in the place.

Sep 27, 2012 9:12pm EDT  --  Report as abuse
BenFE wrote:
So now that 6 years and 2 financial style CEOs have driven this once profitable company into the toilet, they have to take out a $100MM loan to get itself out of debt. Again, the employees and the stockholders get screwed while the 2 CEOs walk out with millions after tanking the company.

And you wonder WHY people are ticked off with CEO pay and the boards that OK it.

Sep 27, 2012 9:19pm EDT  --  Report as abuse
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