Susser Holdings Corp. has completed the refinancing of $425 million of 8.5% senior notes due 2016 using approximately $235 million of capacity under its recently expanded $500 million revolving credit facility, along with available cash.
The notes were called at a price of 104.25%. Including the $18.1 million call premium and approximately $4 million of transaction expenses, the total cost to retire the notes was $447 million (plus accrued interest).
Based on current LIBOR interest rates on the new revolving credit facility, Susser Holdings expects to save an estimated $30 million to $32 million of annual pre-tax interest expense, which would add approximately $0.90 to $0.95 to diluted earnings per share.
The company expects to recognize a one-time pre-tax charge of approximately $26 million, or $0.76 to $0.78 per diluted share, in connection with the refinancing.
Susser Holdings Corp. is a third-generation family led business based in Corpus Christi, Texas that operates over 560 convenience stores in Texas, New Mexico and Oklahoma under the Stripes banner.