Save A Lot, which recently wiped out a pile of debt through a recapitalization and has plans to transition itself to as wholesaler, has secured a new revolving credit facility.
Citizens Commercial Banking this week said it was lead arranger of a $150 million asset-based revolver for St. Ann, Mo.-based Moran Foods LLC, the parent of Save A Lot.
As previously reported, Save A Lot, the second-largest U.S. discounter to Aldi, intends to transition from a wholesaler to a distributor by selling off corporate stores to independent licensees. According to a recent rating review from Moody’s Investor service, Save A Lot expects to have between 965 and 1,035 licensed stores and only about 20 corporate stores after the transformation, expected to take about a year, is complete. The company expects those units will generate approximately $3.3 billion in sales.
Save A Lot as of early this year operated more than 400 stores, with nearly 700 belonging to licensed operators.
The recapitalization, announced in January and completed in April, shaved more than $400 million in debt and transferred ownership from Onex Corp. to lenders including JP Morgan, Voya, CDPQ and Arbour Lane Capital.