The Pantry, Inc. (NASDAQ: PTRY) announced today that it is pursuing debt refinancing consisting of up to $480 million of senior secured credit facilities and $250 million aggregate principal amount of senior notes. The senior secured facilities are expected to consist of a revolving credit facility of up to $225 million to replace the company’s current revolving facility and a $255 million term loan. The Company intends to use the proceeds from the new term loan and senior notes, together with available cash, to repay its outstanding term loans and senior subordinated notes, the aggregate outstanding amount of which is approximately $598 million.
The Pantry anticipates completing these transactions during the current fiscal year, which ends on September 27, 2012. However, there can be no assurance that such new debt financing will be consummated on this timeframe, or that debt financing will be available on terms acceptable to the Company, or at all. In addition, the amounts of the proposed financing, if available, could be different than those currently contemplated.
The senior notes will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction. Unless they are registered, the senior notes may be offered only in transactions that are exempt from registration under the Securities Act or the securities laws of any other jurisdiction. Accordingly, the senior notes will be offered and sold in the United States only to qualified institutional buyers and outside the United States to non-U.S. persons in compliance with Regulation S. This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities that may be offered as part of the debt refinancing in any jurisdiction in which such an offer or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.