Save A Lot Gets $138M Capital Infusion
Save A Lot has reached an agreement with a substantial majority of its lenders to recapitalize the business and deleverage its balance sheet.
According to the St. Louis-based company, an infusion of $138 million in new capital will support the discount grocer's operations and the acceleration of its business transformation plan.
“The agreement with our lenders is an important step in securing Save A Lot’s long-term success,” said Kenneth McGrath, CEO of Save A Lot. “This is a significant statement of confidence in our business and gives us the appropriate levels of capital to compete effectively.”
The terms of the agreement were approved by lenders representing 67% of the company’s term loan agreement. In addition, the agreement provides for a reduction of indebtedness of more than $400 million, strengthening the company’s balance sheet and significantly reducing annual interest expense. The agreement is subject to finalization of definitive documentation and certain creditor approvals. The company expects to complete this process in the first quarter of 2020.
“We have an amazing group of retail partners and team members who provide Save A Lot shoppers with high-quality products at low prices every day," added McGrath. "This new investment is an endorsement of their hard work and dedication to our customers."
Founded in 1977, Save A Lot is one of the largest discount grocery store chains in the United States, with more than 1,100 corporate and licensed stores in 33 states and 14 wholesale distribution centers.
