Content about Debt

June 10, 2013
Rite Aid forecasts Q1 profit; in debt refinancing move

Rite Aid projected that it would turn a profit in the first quarter of fiscal year 2014, results of which it will announce next week.

Camp Hill, Pa. -- Rite Aid projected that it would turn a profit in the first quarter of fiscal year 2014, results of which it will announce next week. The company has also moved to refinance its debt, announcing that it would buy half a billion dollars in notes using proceeds from a new loan, while also

The retail pharmacy chain said it would buy $500 million worth of 7.5% Senior Secured Notes, due 2017, using the proceeds from a $500 million second lien term loan.

The offer will expire on July 5 unless it's extended, the company said.

May 30, 2013
Survey: 11% of adults consider themselves shopaholics

Survey results released Thursday by CouponCabin.com found that more than one-in-10 Americans say their shopping habits have put them in debt, with 20% saying the most amount of shopping debt they've been in exceeds $5,000.

Whiting, Ind. -- Survey results released Thursday by CouponCabin.com found that more than one-in-10 Americans say their shopping habits have put them in debt, with 20% saying the most amount of shopping debt they've been in exceeds $5,000.

The survey, conducted by Harris Interactive, also revealed that 41% of U.S. adults have created shopping debt of more than $1,000. Eleven percent consider themselves to be shopaholics.

February 6, 2013
2013: The year retail rebounds?

By Gary Glick, Cox, Castle & Nicholson LLP

By Gary Glick, partner, Cox, Castle & Nicholson LLP

September 12, 2012
Piccadilly Restaurants files for bankruptcy

Cafeteria-style restaurant chain Piccadilly Restaurants filed for Chapter 11 bankruptcy protection on Friday, citing a breakdown in talks with its lender Atalaya Capital Management.

Baton Rouge, La. -- Cafeteria-style restaurant chain Piccadilly Restaurants filed for Chapter 11 bankruptcy protection on Friday, citing a breakdown in talks with its lender Atalaya Capital Management.

Atalaya had recently purchased part of Piccadilly’s debt, which hasn’t been quantified by the chain.  

Piccadilly was given a commitment for debtor in possession financing of up to $5 million, providing the company with ample liquidity, Piccadilly said.

 

August 27, 2012
Why Specialty Lenders Give Retailers an Edge

By Jim Hogan, GE Capital

By Jim Hogan, james.hogan@ge.com

The retail industry is a bellwether for U.S financial health given that consumer spending is roughly 60%-70% of the economy. While the economy has sent mixed signals of late -- consumer confidence down, unemployment up -- consumer credit has swung up decidedly and leading companies in a wide swath of retail segments can point to positive year-over-year same store sales. This is prompting some retailers -- particularly discount stores--to begin opening new stores.

August 9, 2012
GE Capital Retail Bank, Sam’s Club extend member credit card program

GE Capital Retail Bank, a consumer lending unit of General Electric Co., and Sam’s Club announced their multi-year agreement to continue providing the Sam’s Club credit card program to their Advantage and Business members.

Stamford, Conn. -- GE Capital Retail Bank, a consumer lending unit of General Electric Co., and Sam’s Club announced their multi-year agreement to continue providing the Sam’s Club credit card program to their Advantage and Business members.

GE Capital’s Retail Finance business will continue to manage the Sam’s Club relationship and service the account.

July 12, 2012
The Pantry announces debt refinancing

The Pantry said that it is pursuing debt refinancing consisting of up to $480 million of senior secured credit facilities and $250 million aggregate principal amount of senior notes.

Cary, N.C. -- The Pantry said Thursday that it is pursuing debt refinancing consisting of up to $480 million of senior secured credit facilities and $250 million aggregate principal amount of senior notes.

June 27, 2012
Dollar General to sell $450 million in senior debt

Dollar General Corp. said Wednesday it is offering $450 million in senior notes due in 2017.

Goodlettsville, Tenn. -- Dollar General Corp. said Wednesday it is offering $450 million in senior notes due in 2017.

The retailer said it plans to use the proceeds, along with cash on hand and possible other borrowings, to redeem its outstanding senior unsubordinated notes.

Citigroup, Goldman, Sachs & Co. and KKR are serving as joint book running managers for the offering. BofA Merrill Lynch, Barclays, J.P. Morgan, Wells Fargo Securities, Fifth Third Securities, HSBC, KeyBanc Capital Markets, and US Bancorp are co-managers.

May 7, 2012
Barneys gets new owner in debt-for-equity swap

Barneys New York said that it has reached an agreement with its largest lender, Perry Capital, and other lenders to significantly reduce the retailer’s debt and improve its capital structure.

New York -- Barneys New York said that it has reached an agreement with its largest lender, Perry Capital, and other lenders to significantly reduce the retailer’s debt and improve its capital structure. Under the arrangement, Perry Capital has become the majority owner of Barneys. Under a debt-for-equity swap with Perry Capital, as well as other lenders, Ron Burkle's Yucaipa Cos and current owner Istithmar World, the chain's long-term debt will fall to $50 million from $590 million. The deal makes Perry Capital the majority owner of Barneys.

March 20, 2012
Survey: Importers preparing for surge in consumer spending

Importers who sell to America’s major retailers are preparing for a significant uptick in consumer spending this spring and summer according to a recent survey conducted by Capital Business Credit, (CBC), a non-bank lender that services the retail sector.

New York -- Importers who sell to America’s major retailers are preparing for a significant uptick in consumer spending this spring and summer according to a recent survey conducted by Capital Business Credit, (CBC), a non-bank lender that services the retail sector.

January 3, 2012
ARG: Holiday credit-card debt to drive down January and February sales

January post-holiday sales will plunge to some of the lowest levels in years thanks to a surge in credit card spending over the Christmas season, according to consumer research firm America’s Research Group (ARG).

Charleston, S.C. -- January post-holiday sales will plunge to some of the lowest levels in years thanks to a surge in credit card spending over the Christmas season, according to consumer research firm America’s Research Group (ARG).

"Now that those credit card bills are hitting mailboxes, shoppers will cut back in a very significant way relative to January and February of the last few years," said Britt Beemer, chairman, ARG.

November 1, 2011
Stein Mart completes new bank credit facility

Stein Mart said it has completed a new $100 million senior secured revolving credit facility with Wells Fargo Bank, N.A. to replace an existing $150 million revolving credit facility, which was maturing in early 2012.

Jacksonville, Fla. -- Stein Mart said Monday it has completed a new $100 million senior secured revolving credit facility with Wells Fargo Bank, N.A. to replace an existing $150 million revolving credit facility, which was maturing in early 2012.

The new facility can be increased to $150 million and matures in February 2017. The revolving credit is for general corporate purposes, including issuing standby and commercial letters of credit, and provides an additional source of liquidity, according to Stein Mart.

September 13, 2011
Neiman Marcus Q4 loss widens on debt-related expense as sales rise 11%

Neiman Marcus Group reported a fiscal fourth-quarter loss on debt-related expense and slightly lower margins, even as its revenue rose 11%.

Dallas -- Neiman Marcus Group reported a fiscal fourth-quarter loss on debt-related expense and slightly lower margins, even as its revenue rose 11%.

For the quarter ended July 30, Neiman Marcus lost $61.4 million, compared with a year-earlier loss of $32.8 million. Excluding a $42.7 million after-tax loss on debt extinguishment, the adjusted loss was $18.7 million. Gross margin narrowed to 30.5% from 30.9%.

June 7, 2011
Safeway inks new $1.5 billion revolving credit agreement

Safeway said Tuesday it has signed a new $1.5 billion revolving credit agreement that replaces a $1.6 billion facility.

Pleasanton, Calif. -- Safeway said Tuesday it has signed a new $1.5 billion revolving credit agreement that replaces a $1.6 billion facility.

The new agreement is for four years, while the one it is replacing was set to mature on June 1, 2012.

Safeway said that its Canadian subsidiary can borrow up to $250 million from the new facility, which will be used for general corporate purposes.
 

April 28, 2011
Safeway Q1 profit falls on tax charge

Taxes related to Safeway's effort to pay down debt reduced its first-quarter net income, but the company's adjusted results beat Wall Street's expectations as its revenue rose, the Associated Press reported.

Pleasanton, Calif. -- Taxes related to Safeway's effort to pay down debt reduced its first-quarter net income, but the company's adjusted results beat Wall Street's expectations as its revenue rose, the Associated Press reported.

The company earned $25.1 million for the quarter, compared with $96 million a year earlier. This includes a tax charge related to a plan to pay down its U.S. debt with part of a $1.1 billion dividend in cash and debt from its Canadian operations.

April 26, 2011
RadioShack to sell $300 million in debt

RadioShack Corp. said Monday that it plans to sell $300 million in debt that will come due in 2019.

Dallas -- RadioShack Corp. said Monday that it plans to sell $300 million in debt that will come due in 2019.

The retailer said it plans to use the proceeds from the sale of the senior notes for general corporate purposes, which may include stock buybacks.

April 25, 2011
Borders bonus plan for executives gets OK

Borders Group won approval of an amended executive bonus plan after a judge sought changes to resolve objections from an arm of the U.S. government that oversees bankruptcies, Bloomberg reported.

New York City -- Borders Group won approval of an amended executive bonus plan after a judge sought changes to resolve objections from an arm of the U.S. government that oversees bankruptcies, Bloomberg reported.

Judge Martin Glenn of U.S. Bankruptcy Court in Manhattan said the amended bonus packages, which tie the $6.6 million in payments closer to the financial performance of Borders, were needed so Borders could "maintain its experienced work force."

April 25, 2011
Zale extends maturity of some debt

Zale Corp. is extending the maturity of $120 million of its credit facility by more than two and a half years, the Associated Press reported.

Dallas -- Zale Corp. is extending the maturity of $120 million of its credit facility by more than two and a half years, the Associated Press reported.

The portion being extended includes a seasonal adjustment of $20 million. The debt was set to mature Aug. 11. Now, it matures on April 30, 2014.

Zale said Monday that commitments under the facility remain at $650 million, including a $108 million seasonal adjustment. All commitments mature on the new date in 2014.

April 21, 2011
Report: Woman seeks class-action against Target over debt-collection methods

A western Pennsylvania woman filed a federal lawsuit against Target Corp. and its law firm over the chain's debt-collection practices, the Associated Press reported.

New York City -- A western Pennsylvania woman filed a federal lawsuit Wednesday against Target Corp. and its law firm over the chain's debt-collection practices, the Associated Press reported. The woman claims false affidavits were used to go after customers who allegedly owed money to a subsidiary bank that issues the store's credit cards.

March 30, 2011
Saks extends credit agreement to 2016, revises terms

Saks said Tuesday that lenders have agreed to amend a $500 million revolving credit agreement that now extends to 2016.

New York City -- Saks said Tuesday that lenders have agreed to amend a $500 million revolving credit agreement that now extends to 2016. The agreement also favorably revises other terms.

As a result, the department store retailer estimates its 2011 interest expenses will total about $50 million, down from its previous estimate of $51 million to $53 million.

The debt previously was scheduled to mature Nov. 23, 2013. Now, it matures March 29, 2016.

March 28, 2011
Home Depot plans $2 billion of debt to build cash, buy stock

Home Depot said Monday it is returning to the corporate bond market for the second time in less than seven months to rebuild its cash stockpile and finance share buybacks.

Atlanta -- Home Depot said Monday it is returning to the corporate bond market for the second time in less than seven months to rebuild its cash stockpile and finance share buybacks.

According to a filing with the Securities and Exchange Commission, the company plans to sell 10- and 30-year bonds. It is offering $1 billion of each maturity.

Home Depot is replacing $1 billion of 5.2% notes issued in 2006 that matured March 1, and raising money to buy its own stock. The notes may be sold as soon as Monday.

February 10, 2011
Report: Blockbuster may try to sell itself

Blockbuster plans to put itself up for sale after a disagreement with its creditors, according to a Wall Street Journal report.

New York City -- Blockbuster plans to put itself up for sale after a disagreement with its creditors, according to a Wall Street Journal report.

The report, which cited unnamed sources, said the chain could not agree with creditors on a plan to get cash to help it exit bankruptcy protection. According to the Journal, a bidder could offer more than $300 million for the chain plus assuming debt and leases.
 

February 8, 2011
Consumer credit increases for third straight month

A report released Tuesday by the Federal Reserve said that U.S. consumer borrowing rose in December for a third consecutive month, led by the first increase in credit-card charges in more than two years as holiday sales improved.

Washington, D.C. -- A report released Tuesday by the Federal Reserve said that U.S. consumer borrowing rose in December for a third consecutive month, led by the first increase in credit-card charges in more than two years as holiday sales improved.

January 28, 2011
Borders receives refinancing commitment from GE Capital

Borders Group said it has received a commitment from GE Capital, Restructuring Finance to provide a $550 million senior secured credit facility.

Ann Arbor, Mich. -- Borders Group said it has received a commitment from GE Capital, Restructuring Finance to provide a $550 million senior secured credit facility. Upon completion, the facility, including the obtaining of $125 million of additional junior debt financing via the conversion of vendor payables and/or external sources, will provide Borders with the financial flexibility and an appropriate level of liquidity to move forward with its strategy to reposition its business model and the Borders brand.

January 4, 2011
More Borders woes: Two execs resign

On the heels of Monday’s announcement that Borders Group is delaying payments to some of its vendors, the bookseller said Tuesday that two senior-level executives have departed.

New York City -- On the heels of Monday’s announcement that Borders Group is delaying payments to some of its vendors, the bookseller said Tuesday that two senior-level executives have departed.

Thomas Carney, general counsel, and D. Scott Laverty, chief information officer, both resigned from their posts Monday evening.

The news was disclosed in a Securities and Exchange Commission filing Monday. Borders told the Wall Street Journal that the departures were part of its previously disclosed efforts to improve liquidity.