FREDS, INC. (NASDAQ:FRED) Files An 8-K Termination of a Material Definitive AgreementITEM 1.02 TERMINATION OF A MATERIAL DEFINITIVE AGREEMENT.
Termination of Commitment Letters
As previously disclosed, on June 9, 2017, Fred’s, Inc. (the “Company”) entered into a second amended and restated commitment letter with Bank of America, N.A., Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPFS”), Regions Bank, Regions Capital Markets, a Division of Regions Bank, and Citizens Bank, N.A. (the “Second Amended and Restated ABL Commitment Letter”), and an amended and restated commitment letter with MLPFS, TPG Specialty Lending Inc. and certain of its affiliated funds, certain affiliated funds of Birch Grove Capital LP, Crystal Financial LLC, Gordon Brothers Finance Company, LLC, Pathlight Capital LLC, Silver Point Specialty Credit Fund, L.P., Tennenbaum Capital Partners, LLC, Great American Capital Partners, LLC, certain affiliated funds of Apollo Global Management, certain affiliated funds of Cerberus Business Finance LLC, KKR Credit Advisors US LLC and certain of its affiliates, managed funds and accounts, and White Oak Asset Finance (the “Amended and Restated Term Loan Commitment Letter”).
In light of the termination of that certain Asset Purchase Agreement, dated as of December 19, 2016, by and between the Company, AFAE, LLC, Rite Aid Corporation and Walgreens Boots Alliance, Inc., on July 21, 2017, the Company provided notice to the parties identified above of its immediate termination of the Second Amended and Restated ABL Commitment Letter and Amended and Restated Term Loan Commitment Letter. In connection with such termination, the Company will pay the applicable termination fees contemplated by the Second Amended and Restated ABL Commitment Letter and Amended and Restated Term Loan Commitment Letter.
About FRED’S, INC. (NASDAQ:FRED)
Fred’s, Inc. (Fred’s) is engaged in the sale of general merchandise through its retail discount stores and full service pharmacies. The Company sells general merchandise to its over 20 franchisees. The Company has approximately 660 retail stores, over 370 pharmacies, and approximately three specialty pharmacy facilities located in over 15 states mainly in the Southeastern United States. The Company is licensed to dispense pharmaceuticals in approximately 50 states. The Company operates approximately 640 company-owned stores, including over 60 express stores (or Xpress stores). Fred’s is a combination of pharmacy, dollar store and mass merchant strategically located in smaller markets. It offers various product categories, including consumables, such as tobacco, food and beverage, prescription pharmaceuticals, paper and cleaning supplies, pet supplies, health and beauty aids, and discretionary products, such as home decor, seasonal merchandise, auto and hardware, and lawn and garden. FRED’S, INC. (NASDAQ:FRED) Recent Trading Information
FRED’S, INC. (NASDAQ:FRED) closed its last trading session down -0.16 at 6.38 with 742,701 shares trading hands.