Orchard Supply points to strengthened financial position
Orchard Supply Hardware Stores has announced additional progress in its efforts to strengthen its financial position through refinancing and reducing its debt.
The company closed on a new five-year Senior Secured Credit Facility consisting of a $120.0 million revolving credit facility and a $7.5 million FILO term loan, with Wells Fargo Capital Finance and Bank of America, N.A. The new facility replaces Orchard’s existing $100.0 million Senior Secured Credit Facility.
During the past 12 months, Orchard reduced its long-term debt by about $93 million and secured funds to remodel Orchard stores, primarily through multiple sale-leaseback transactions of company-owned properties. Its Real Estate Secured Term Loan was paid off as of July 28, 2012.
"We are pleased with the progress we have made to strengthen the company’s financial position, which includes substantially reducing debt and lowering our borrowing costs," stated Chris Newman, EVP and chief financial officer. "We are particularly pleased to have the new credit facility in place, which provides Orchard with additional borrowing capacity at better rates. We greatly appreciate the confidence that Wells Fargo and Bank of America have in our ability to manage and grow the company."
Moelis & Co. will lead the refinancing efforts of the Senior Secured Term Loan.
Hardware store damaged by Irene reopens
One year and two months after Irene swept through Prattsville, N.Y., Young’s Agway is open again, according to an article on Fox23News.com. Irene had destroyed the building and washed away its inventory.
“Today is the culmination of a lot of work and it is kind of the party,” store owner James Young told Fox23News.
Young said the new 10,000-sq.-ft. building on Washington Street is bigger and better than before.
Orchard Supply to relaunch Los Angeles store
Orchard Supply Hardware Stores has announced the planned grand reopening of its expanded West Los Angeles store on Oct. 20, which marks the continuing rollout of its new neighborhood store format. The location (2020 S. Bundy Drive) has been operational since opening in 1994.
"The West Los Angeles location has been a great performer for Orchard, and we believe this expanded and enhanced store will enable us to better serve the home improvement needs of our local customers," said Mark Baker, Orchard Supply Hardware president and CEO. "We have fully transformed the interior and nursery to reflect our innovative, new neighborhood store format, while also nearly doubling the number of parking spaces available for customers."
The store’s selling space will be expanded by the merchandising of a mezzanine. The nursery will also be expanded, featuring improved aesthetics and providing greater access for customers from the parking lot.
The new stores that Orchard is opening and the existing locations it is upgrading are expected to help the company take advantage of the "white space" between small, independently owned hardware stores and big-box home improvement stores. By the end of 2012, Orchard plans to have 12 stores operating in this new format.
In September, Orchard added two California stores to its rollout, with the grand re-openings of a pair of stores in the company’s hometown of San Jose on Oct. 6.
The new layout is based on a race-track configuration, which maximizes traffic flow. The store also features an expanded and centralized customer-service area — the "Workbench.”