RadioShack gets new financing offer

By IVCPOST Staff Reporter

Oct 03, 2013 10:37 PM EDT

RadioShack Corp, a US retail company, had received several offers for new financing. The offer included one coming from current lenders Bank of America Corp and Wells Fargo & Co. This was according to three sources familiar with the matter who told Reuters.

According to a Reuters report, getting a new financing deal could help the US retailer cut its borrowing costs. This would also help assure vendors and other key partners that the company holds enough cash to fund future efforts. RadioShack Corp is led by Chief Executive Joe Magnacca.

The retailer made a USD214 million debt payment due last August with cash. The company still has more than USD200 million in cash and USD400 million available on its credit facility after the payment was made.

General Electric Co's unit, GE Capital, was reported by sources to make large asset based lending deals. Another source told Reuters that JP Morgan had been considering making an offer.

Representatives for Bank of America, Wells Fargo, RadioShack refused to comment. GE Capital and JP Morgan did not respond to requests seeking statements.

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