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CARY, N.C. -- The Pantry Inc. today announced it closed its previously announced debt refinancing, which included a private placement of $250 million of its 8.375-percent yielding senior unsecured notes due 2020, its seven-year $225 million senior secured term loan and a new five-year $225 million senior secured revolving credit facility.
According to the parent of Kangaroo Express, the proceeds of the loans are being used to finance a tender offer and/or redemption of all of its outstanding senior subordinated notes, to repay its outstanding debt under its prior credit facility, pay expenses related to these transactions, and for general corporate purposes.
Regarding redemption of its outstanding senior subordinated notes, the Pantry's recent offer to purchase all of its senior subordinated notes due to mature in 2014 has been successful. Slightly more than 90 percent of debt holders have tendered their notes as of the deadline, 5 p.m. New York City time last night, the company reported.
The Pantry continues to seek to purchase the remaining 10 percent of the notes that were not previously tendered. However, note holders who tender their shares now would only receive $993.75 per $1,000 worth of notes owned. The deadline to tender those notes is 11:59 p.m. New York City time on Aug. 16.