Gander Mountain extended the maturity date on its $10 million term loan
with its two major shareholders from March 30 to June 30, according to
its 10Q. The lenders under the agreement are Gratco LLC, an affiliate
of David Pratt, chairman and interim CEO, and Holiday Companies, an
affiliate of Ronald A. Erickson, vice chairman, and Gerald A. Erickson,
a director.
The company said in a filing that current borrowing availability under
its facility with Bank of America as of June 10, 2009, was $36.3
million. The retailer said it intends “to satisfy all of our capital
requirements in the next 12 months with cash flows from operations and
funds available under our credit facility.” But the retailer did note
that if sales and cash flows from operations do not meet anticipated
levels, credit markets are disrupted, and Bank of America lowers
its advance rates further, “the company would need to seek
additional financing.”
In the first quarter, Gander Mountain narrowed its loss
to $18.6 million from $24.4 million a year ago. Sales were $227.7
million compared to $207.7 million for the first quarter of fiscal
2008, a 9.6% increase.
