Beaumont, Texas - Multiregional
CE and appliance chain Conn's has refinanced its debt under a previously
announced plan that extends the maturity dates of its loans by more than three
The refinancing plan
includes an expanded asset-based loan facility of $375 million, and a new $100
million senior secured second lien term loan, with maturity dates in 2013 and
with the debt facilities, the company completed a $25 million common stock
rights offering. Conn's said it used a portion of the net proceeds from the
borrowing facilities and the rights offering to repay the outstanding debt
balances under the company's existing asset-backed securitization program.
"We are very
pleased with our ability to complete this critical refinancing transaction,
despite the challenging financial market conditions," said Conn's president/CEO
Tim Frank. "We are very fortunate to have the continued support of our
long-term financial relationships and are very appreciative of the new
relationships we are beginning with these transactions."
acted as financial advisor in connection with the transactions and Robert W.
Baird & Co. acted as financial advisor to a committee of the company's
board in connection with the rights offering.
Bank of America
Merrill Lynch and JPMorgan Chase acted as joint book runners and co-lead
arrangers for the asset-based loan facility, with Bank of America Merrill Lynch
also acting as the administrative and collateral agent. JPMorgan Chase and Wells
Fargo Preferred Capital will act as co-syndication agents, while Capital One,
N.A. and Regions Business Capital will act as co-documentation agents. The
other participants in the facility include Amegy Bank, BBVA Compass,
CommunityBank of Texas, N.A., First Tennessee Bank National Association and
Union Bank, N.A.
GA Capital, a
subsidiary of Great American Group, will act as the administrative agent and
collateral agent for the term loan facility. The lenders include funds managed
by Tennenbaum Capital Partners, a multi-strategy alternative investment
management firm; GB Merchant Partners' Debt Investment Group, an affiliate of
Gordon Brothers Group; and the Retail Junior Capital division of Wells Fargo
Beaumont, Texas - Multiregional CE and appliance chain Conn's has refinanced its debt under a previously announced plan that extends the maturity dates of its loans by more than three years.