The Pantry Completes Refinancing of Term Loan

Company expects to reduce interest expense

CARY, N.C.-- The Pantry Inc. has announced that it has completed the refinancing of its senior secured 2019 term loan.

At the company's current leverage ratio, the $253 million term loan will bear interest at LIBOR plus 375 basis points with a LIBOR floor of 100 basis points, compared to LIBOR plus 450 basis points with a LIBOR floor of 125 basis points prior to the refinancing. The maturity date continues to be Aug. 2, 2019. With the lower interest rates resulting from this refinancing, the company expects to reduce interest expense approximately $2.5 million on an annualized basis.

Last week, The Pantry reported net income of $5.9 million for its fiscal third quarter ended June 27, 2013. This compares to net income of $14.8 million in last year's third quarter.

The Pantry continues to build, remodel and close convenience stores as part of a store portfolio optimization strategy that it hopes will result in greater overall sales and growth. President and CEO Dennis Hatchell said during an earnings conference call Tuesday, "We currently have more than 50 projects under way, including remodels, QSR additions, new stores and a rebuild."

Based in Cary, N.C., The Pantry Inc. is a leading independently operated convenience store chain in the southeastern United States and one of the largest independently operated convenience store chains in the country. It operates 1,562 stores in 13 states under select banners, including Kangaroo Express, its primary operating banner.