Winmark to redeem $18.6 million outstanding renewable notes at par

By Susanna Moon

Chicago, June 30 - Winmark Corp. said it will redeem all of its outstanding renewable unsecured subordinated notes at par.

The company also will pay accrued interest to the redemption date, which is expected to be July 30.

As of June 26, there was about $18.6 million of the notes outstanding.

Winmark said it will use a combination of existing cash as well as bank borrowings to finance the redemption.

The redemption is contingent upon Winmark obtaining financing to complete the deal.

Winmark said it received a commitment from one of its lenders on a new bank agreement that it expects to have in place by the redemption date.

"This series of transactions will lower our overall cost of borrowing, allow us to use our existing cash to pay down debt and preserve our flexibility for the future," John L. Morgan, chairman and chief executive officer, said in a company press release.

Winmark is a Minneapolis, Minn.-based franchisor of four value-oriented retail store concepts, which buys, sells, trades and consigns merchandise.

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