RadioShack Closes Financing Deal Totaling $75 Million
FORT WORTH, Texas and NEW YORK - July 6, 2015 // PRNewswire // - General Wireless Operations Inc., doing business as RadioShack, announced today that it has completed new financing totaling $75 million, consisting of a $50 million Asset Based Lending credit facility ("ABL") led by RBC Capital Markets ("RBC") and a $25 million first-in last-out term loan led by Great American Capital Partners ("GACP"). This financing will allow the company to continue investing in and improving the brand by enhancing its in-store experience, delivering an exciting new product mix of state-of-the-art electronics, and continue developing its game changing partnership with Sprint, building out more than a thousand "Sprint Stores at RadioShack" in locations across the country.
"We have ambitious plans for the new RadioShack, and this financing gives the new and reinvigorated RadioShack the ability to fully implement our strategic plan to provide superior products and services to over 1,200 communities," said Ron Garriques, Chief Executive Officer of RadioShack. "The new RadioShack is a place where everyone can meet their needs from a broad assortment of consumer electronics, accessories and connected tech. We will carry a wide range of new cutting-edge products and experiences from global brands as well as our exclusive brands that offer our customers tremendous value at great prices."
"We are excited to help RadioShack reach the next level of its strategic development," said John Ahn, president of GACP. "They already have the footprint, the partners and the brand recognition, and we are proud to help them with the financing they need to be successful."
Over the past three months, RadioShack has taken several steps to revitalize the brand, renovating many of its stores, updating and streamlining its inventory, and launching new marketing campaigns along with several other initiatives. The company has formed exclusive partnerships with exciting new manufacturers, allowing them to sell popular technology products not available in other stores. In addition, RadioShack's partnership with Sprint gives its customers access to industry-first mobility leasing plans and the latest mobility devices.
Otterbourg P.C. acted as counsel to RBC and Paul Hastings LLP acted as counsel to GACP.
DLA Piper acted as counsel to General Wireless.
RadioShack is a leading national retailer of innovative technology products and services, as well as products related to personal and home technology and power supply needs. RadioShack offers products and services from top national brands, exclusive private brands, and mobile services through its wireless partner Sprint, all within a comfortable and convenient shopping environment. The new RadioShack has over 1,700 company-owned stores and over 600 dealer franchise locations as well as 1,400 Sprint Stores at RadioShack located nationwide.