Pantry Issues $130 Million in New Debt

SANFORD, N.C. -- The Pantry Inc. plans to issue $130 million of new debt.

The convenience store operator's new debt will be issued through seven-year, senior subordinated convertible notes.

The retailer intends to use the majority of the offering's proceeds to pay down existing senior debt and for general corporate purposes, including acquisitions. The Pantry also said it will use the money for the net cost of a convertible bond hedge and separate warrant transaction entered into in connection with the notes.

The Pantry plans to grant the initial purchasers of the debt a 30-day option to purchase up to an additional $20 million of notes to cover over-allotments.

The company operates 1,400 stores in 11 states under a number of banners.
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