Indianapolis - As it prepares to open two new markets -- Mobile, Ala., and Pittsburgh -- hhgregg has widened its war chest with a new $300 million revolving credit line.
The amended credit facility, from Wells Fargo and J.P. Morgan Chase, increases the company's maximum borrowing capacity from $125 million and extends the maturity date to 2016. As part of the closing, the chain also paid off all outstanding term debt with $90 million of excess cash.
CFO Jerry Aguilar said the refinancing "provides hhgregg with the appropriate capital structure and liquidity position as it moves closer to becoming a national retailer."
Indeed, the CE, appliance and bedding retailer plans to open between 35 and 45 new stores this year, on top of last year's 43, as it steadily works its way to becoming a 600-store chain.
This year's focus will be in Chicago, where hhgregg plans to open upwards of 20 stores in the fall, and Miami and Pittsburgh, where a build-out will begin this spring. The company has already begun recruiting to fill about 200 positions in four Pittsburgh-area stores.
Other recent job postings, for managers-in-training, commissioned sales associates, warehouse staff, and customer-service merchandisers, were for new stores in Mobile; Boardman, Ohio; and Myrtle Beach, S.C. All are scheduled to open this spring.