Conn's Expands Credit Facility, Repays Term Loan
Conn's made three financial announcements Monday: that it has expanded and extended its revolving credit facility, that it has completed an $8 million real estate loan and that it has repaid a $100 million second lien term loan.
The $55 million expansion of the credit facility expands it to $430 million and extends it to July 2015. The $8 million real estate loan, through CommunityBank of Texas, N.A., will finance three owned store locations. And the repayment of the term loan reduces the company's interest expense by approximately $11.9 million annually, Conn's said.
"We are fortunate to have the support of such strong financial partners,” Theodore Wright, the Company’s Chairman, said as part of the announcement. “Together with our recently completed real estate loan and the expected cash flow to be received from continued reductions in the credit portfolio balance, this enhanced revolving credit facility provides us a stable source of capital to support long-term growth.