The Pantry Inc. announced that it has completed the refinancing of its senior secured 2019 Term Loan.

At the company’s current leverage ratio, the $253 million Term Loan will bear interest at LIBOR plus 375 basis points with a LIBOR floor of 100 basis points, compared to LIBOR plus 450 basis points with a LIBOR floor of 125 basis points prior to the refinancing.

The maturity date continues to be Aug. 2, 2019. With the lower interest rates resulting from this refinancing, the company expects to reduce interest expense approximately $2.5 million on an annualized basis.

Headquartered in Cary, N.C., The Pantry Inc. operates 1,562 stores in 13 states under select banners, including Kangaroo Express, its primary operating banner.