ShopKo secures new credit
Home & Textiles Today Staff -- Home Textiles Today, January 29, 2001
Heartland retailer ShopKo Stores Inc., Green Bay, WI, said it has cut a deal with Fleet Retail Finance for a new three-year, $600 million senior secured revolving credit faculty.
The new credit pact is secured by the inventory and accounts receivable of ShopKo and its subsidiaries.
The retailer said the financing commitment is expected to close in about 45 days and will replace ShopKo's existing senior bank facilities under which about $293.4 million is outstanding.
William Podany, chairman, president and ceo, commented: "This commitment marks substantial progress toward providing financial stability to our capital structure. With this new credit facility, we now have the flexibility to focus our entire organization on initiatives designed to further strengthen our financial position and to deliver measurable improvements to shareholder value."
Ward Mooney, president of Fleet Retail Finance, said, "This commitment reflects our confidence in the ability of ShopKo's management team."
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