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WFCF, Bank of America Close $127.5MM Five-Year ABL Facility for Orchard Supply

October 18, 2012, 08:00 AM
Filed Under: Retail

Orchard Supply Hardware Stores Corp. closed on a new five-year senior secured credit facility consisting of a $120.0 million revolving credit facility and a $7.5 million FILO term loan, with Wells Fargo Capital Finance and Bank of America. The new facility replaces the company's existing $100.0 million senior secured credit facility.

During the past 12 months, the company reduced its long-term debt by approximately $93 million and secured funds to remodel Orchard stores, primarily through the execution of multiple sale-leaseback transactions of Company-owned properties. The Company's Real Estate Secured Term Loan was paid off in its entirety as of July 28, 2012.

"We are proud to lead the Orchard Supply Hardware revolver and are excited to be a valued lender as the company solidifies its balance sheet," said Keith Vercauteren, head of the Retail Finance Division of Wells Fargo Capital Finance. "Through ongoing collaboration, we look forward to enhancing our relationship in continued support of the company's success."

The company also announced that it has engaged Moelis & Co. to lead the refinancing efforts of the senior secured term loan.

Orchard Supply Hardware Stores Corporation is a neighborhood hardware and garden store focused on paint, repair and the backyard. Founded as a purchasing cooperative in San Jose in 1931, today the stores average 44,000 square feet of enclosed retail space and 8,000 square feet of exterior nursery and garden space, carrying a broad assortment of merchandise for repair, maintenance and improvement needs for the home and backyard. As of October 17, 2012, the Company had 89 stores in California.

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