Oak Brook, Ill.-based Ace Hardware Corp. announced the early redemption of its outstanding 9.125% senior secured notes originally maturing June 1, 2016. The refinance was driven by the April 13, 2012, closing of a new five-year $600 million senior secured credit facility composed of a new $400 million revolving credit facility and a new $200 million term loan, according to the co-op.
Ray Griffith, president and CEO of Ace Hardware, said the deal puts Ace in a position for “significant future interest savings, while reflecting our strong financial position and ability to access the financial market at attractive terms.”
In addition to the early redemption of the senior notes, the new facility also replaced an existing $300 million senior secured revolving credit facility.
The pricing on the new $600 million facility will initially be LIBOR plus an applicabl