BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Circuit City grows credit line to $1.3 billion]]>http://www.bloggingstocks.com/2008/02/07/circuit-city-grows-credit-line-to-1-3-billion/http://www.bloggingstocks.com/2008/02/07/circuit-city-grows-credit-line-to-1-3-billion/http://www.bloggingstocks.com/2008/02/07/circuit-city-grows-credit-line-to-1-3-billion/#commentsFiled under: , ,

Electronics retailer Circuit City Stores Inc. (NYSE: CC) has upped its corporate credit line to the tune of $800 million, giving the troubled retailer an open credit facility of nearly $1.3 billion. It also set terms on the new credit facility to expire a little less than five years from now in January 2013. Circuit city also has the option of increasing that line by an additional $300 million should it need to get further in debt.

It's no surprise that the Richmond, Virginia retailer is taking out larger credit notes, as it may need to draw on the new line for capex and other expenditures soon. Perhaps a share repurchase to lower share dilution? The retailer's shares could certainly use propping up, which may give Mark Wattles some concern should he really be interested in acquiring the chain at some point in 2008.

Right now, Circuit City shares are trading at $4.72 and the company has a market cap of just over $794 million. It's amazing that the second-largest consumer electronics chain in the U.S. has a market cap below one billion, but based on a slew of horrid results in 2007, shares have tanked consistently in the last 12 months. Still, the company's locations, brand and inventory is easily worth more than the total market value of its shares, so it will be interesting to see what Circuit City does with the new credit line

Circuit City grows credit line to $1.3 billion originally appeared on BloggingStocks on Thu, 07 Feb 2008 11:33:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>CCCircuit CityCircuit City creditCircuit City StoresCircuitCityCircuitCityCreditCircuitCityStoresinthenewsThu, 07 Feb 2008 11:33:00 EST