Winmark redeems remaining renewable notes at par with loans proceeds

By Susanna Moon

Chicago, July 30 - Winmark Corp. said it redeemed all of its outstanding renewable unsecured subordinated notes at par plus accrued interest.

Winmark said it borrowed $16 million on its line of credit to finance the redemption.

The company said on June 30 that it expected to redeem the notes on July 30.

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

Winmark previously said it would also use existing cash to fund the purchase.

The redemption was contingent upon Winmark obtaining financing for the deal.

"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 previous press release.

Winmark is a Minneapolis-based franchisor of four value-oriented retail store concepts that buy, sell, trade and consign merchandise.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.