Salus Capital Closes $250 Million Senior-Secured Term Loan for RadioShack
BOSTON, December 2013 – Salus Capital Partners, LLC, announced it has led a $250 million secured term loan to RadioShack Corporation. The term loan was provided alongside an additional $585 million secured credit facility for which GE Capital, Corporate Retail Finance is serving as administrative and collateral agent. The combined proceeds of $835 million will be used to refinance existing debt and provide additional liquidity.
“We are pleased to have Salus Capital as a strategic lender and the additional liquidity this new secured term loan provides RadioShack,” said Joseph C. Magnacca, CEO of RadioShack. “The Salus team understood exactly what we needed from a financing partner and the financial backing from Salus allowed us to increase our liquidity using our existing collateral and enhance our financial flexibility.”
“History served merely as a benchmark from which we could work together with the RadioShack executive team,” remarked Andrew H. Moser, President and CEO of Salus Capital. “We believe our ability to understand the value in certain assets together with RadioShack’s turnaround plan for the company’s future allowed us to stand behind management’s vision and lead this fully funded term loan and provide necessary liquidity.”
Based in Fort Worth, TX, RadioShack is a national retailer of mobile technology products and services, as well as products related to personal and home technology and power supply needs. RadioShack offers consumers an assortment of electronic products and services from leading national brands, exclusive private brands and major wireless carriers. RadioShack's retail network includes approximately 4,300 company-operated stores in the U.S., over 270 company-operated stores in Mexico, and approximately 1,000 dealer and other outlets worldwide.