Susser Holdings Corporation (NYSE: SUSS) has announced that it 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 Corporation 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. Restaurant service is available in approximately 355 of its stores, primarily under the proprietary Laredo Taco Company® brand. Susser Holdings also is majority owner and owns the general partner of Susser Petroleum Partners LP, which distributes over 1.4 billion gallons of motor fuel annually to Stripes® stores, independently operated consignment locations, convenience stores and retail fuel outlets operated by independent operators and other commercial customers in Texas, New Mexico, Oklahoma and Louisiana.
