CHANDLER, Ariz. — Bashas' here said Friday it has refinanced its secured debt with a new lender group, enabling it to restructure the debt faster than originally planned.
The company said the refinancing will allow it to operate under normal business circumstances instead of relying solely on its own cash, providing more financial security and stability.
Bashas' emerged from a voluntary Chapter 11 filing in August 2010.
As part of the refinancing, the company said it has completely repaid its original secured lenders, including Prudential and its previous banking groups. Bashas' also said it will continue to make scheduled payments to unsecured creditors, comprised primarily of vendors.
According to Edward Basha, vice president, retail operations, "We are grateful to our vendors for returning our company back to regular purchase terms much faster than we anticipated. While we continue to operate in a challenging recession, we remain true to our commitment to become a stronger company. We've come a long way, and this refinancing gets us one step closer to repositioning our company in a strong financial position."
The chain's new lending partners are Wells Fargo Capital Finance, Tennenbaum Capital Partners, GB Merhcant Partners and an affiliate of Stone Tower Capital. Bashas' said it will operate with a revolving line of credit from Wells Fargo and a four-year term loan arranged by GA Capital.
Darl Andersen, president and chief executive officer, said the new banking relationship "demonstrates lenders' confidence in Bashas'. Our improved operations put the company in a position to be attractive to new lenders, [which] allowed us to restructure our secured debt faster than planned.
