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CARY, N.C. -- The Pantry Inc., parent company of Kangaroo Express, is pursuing debt refinancing to repay its outstanding term loans and senior subordinated notes. The financing will be combined with available cash to pay the aggregate outstanding amount of approximately $598 million.
According to the company, the debt refinancing will consist of up to $480 million of senior secured credit facilities and $250 million in aggregate principal amount of senior notes. The senior secured facilities are expected to consist of a revolving credit facility of up to $225 million to replace the company's current revolving facility and a $255-million term loan.
The Pantry anticipates completing these transactions during the current fiscal year, which ends on Sept. 27. However, the company said there can be no assurance that the financing will be executed in that timeframe, or that the company will find available debt financing with acceptable terms. In addition, the amounts of the proposed financing could be different than what The Pantry is currently contemplating, according to a company release.