Moran Foods, LLC (Save A Lot) has refinanced its debt dating back to its restructuring in 2020, a move that company officials said would provide opportunities for growth.
The refinancing includes a new $200 million, five-year asset-based lending credit facility (ABL), comprised of a $180 million traditional ABL and a $20 million First In Last Out ABL Facility (FILO), that refinances a more restrictive $150 million ABL and an expensive $48 million FILO.
Additionally, the company extended the maturity of approximately $377 million of existing Term Loans, including First-Lien Term Loans totaling approximately $250 million, with maturities extended to June 30, 2026, and Second-Lien Term Loans totaling approximately $127 million, with maturities extended to December 31, 2026.
A total of approximately $22 million of existing Second-Lien Term Loans were not extended and will mature on Oct. 1, 2024. The company also extended $15 million of commitments under the Super-Senior Credit Facility to June 30, 2026.
“The financial stability brought on by our transformation into a branded wholesaler, focused on supporting our independent licensees, has allowed us to complete a refinancing of the business, putting in place a more traditional asset-based lending facility and extending the maturities of most of our existing term loans,” said Leon Bergmann, CEO of Save A Lot. “The benefits of this include improved liquidity, increased operational flexibility, and lower borrowing costs.
Bergmann feels this move will translate into a greater opportunity for the company to both invest in growth, through its licensed retail store model, and, coupled with its on-going sale of excess real estate, provide a path to potential meaningful debt reduction.