RadioShack to raise $100 mln through term loan
Sept 27 |
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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