St. Louis — Save A Lot Food Stores Ltd. has reached an agreement with a substantial majority of its lenders to recapitalize the business with $138 million and deleverage its balance sheet, the discount grocer reports.
The infusion of capital will support the company’s operations and accelerate its business transformation plans, according to Save A Lot. Under the agreement, which has been approved by lenders representing 67 percent of the company’s term loan credit agreement, Save A Lot will be able to reduce “indebtedness” of more than $400 million.
Kenneth McGrath, Save A Lot CEO, says: “This is a significant statement of confidence in our business and gives us the appropriate levels of capital to compete effectively. 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. This new investment is an endorsement of their hard work and dedication to our customers.”
The agreement is subject to finalization of definitive documentation and certain creditor approval, and is expected to be completed during this fiscal quarter, according to the discount grocer.