The Pantry has tapped Wachovia Securities to lead its $440 million bank debt refinancing. The facility includes a $70 million revolver and $370 million term loan. The company currently has a $56 million revolver, $247 million first-lien term loan and $50 million second-lien loan, according to Berry Epley, the company's corporate controller. The existing first lien is priced at LIBOR plus 41/4%, while the second lien carries a spread of LIBOR plus 61/2%. "We think this is an opportunistic refinancing due to what market conditions are now," Epley said. "We believe we'll be able to upsize the revolver and we do think the environment is right for an interest rate cut." Epley declined comment on pricing on the new deal. Wachovia leads the current bank deal with Wells Fargo. Epley declined comment regarding Wells Fargo's involvement in the new deal, but said, "We had a lot of folks pitching. We're looked at as a pretty good deal now, I believe."
The Pantry is concurrently refinancing $225 million senior subordinated notes. Credit Suisse First Boston is the lead manager and sole bookrunner on the bond deal with Wachovia as the co-manager, Epley said. The company is aiming to complete the deal quickly to take advantage of current market conditions. "Probably within a month or so we'll complete both deals," Epley said. The Pantry is an independently operated convenience store chain.