Web-only technology products and services retailer Softchoice Corp. has received an extension to March 31 of a $45 million term loan that is to be repaid from the proceeds of a new debt structure that the company is negotiating with a syndicate of global financial institutions.
The term loan was originally scheduled for repayment on Dec. 31, 2008. The extension also was approved by the company’s existing asset backed lender, which recently amended its revolving credit facility to remove a condition that conflicted with the scheduled repayment of the term loan, Softchoice says.
Toronto-based Softchoice expects that both of these credit facilities will be replaced by a new credit structure composed of an asset backed lending facility in the amount of about $101 million (U.S.) and a new subordinated term loan for about $21 million (U.S.) early in 2009.
“We believe that this new debt structure will provide the capacity and flexibility needed to support the company’s long-term growth objectives” says Anne Brace, chief financial officer at Softchoice, which is No. 256 in the Internet Retailer Top 500 Guide.