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Petco Announces Debt Refinancing Plans

Petco, the leading pet supply retailer, has recently revealed its intentions to roll out a debt refinancing initiative in order to extend the maturities of its outstanding debts. This move signals the company's proactive stance in managing its financial commitments while simultaneously reasserting its earnings outlook for both the fourth quarter and the entirety of fiscal year 2025.

In a statement made on January 12, 2026, Petco confirmed its plan to refinance $1.5 billion of its existing term loan. However, the company cautioned that completion of this refinancing is subject to prevailing market conditions and other pivotal considerations. Therefore, it cannot guarantee that the transaction will be finalized in full or even partially. Just last month, in December 2025, Petco made a voluntary prepayment of $50 million utilizing cash reserves and indicated that it might consider additional prepayments under an authorized capacity of $100 million.

This refinancing strategy underscores Petco's commitment to sustaining operational agility and financial health. Alongside the refinancing announcement, Petco also reaffirmed its expectations for net sales and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the upcoming fiscal quarter and full year. According to their projections, net sales are expected to show a decline of approximately 2.5% to 2.8%, with Q4 predictions suggesting low single-digit decreases year-over-year. Meanwhile, adjusted EBITDA is anticipated to fall within the range of $395 million to $397 million for the fiscal year, with Q4 estimates at $93 million to $95 million.

Joel Anderson, Petco’s Chief Executive Officer, expressed pride in the accomplishments of the operational team, which comprises nearly 30,000 members. He stated, “This performance continues to be a testament to the execution of our team and the resilience of the category in which we operate.”

Petco's ability to navigate this refinancing is heavily influenced by current economic conditions, currency fluctuations, and the tax and regulatory framework. The company also noted that existing tariffs on imports are crucial elements affecting their financial landscape. As they work through potential refinancing arrangements, it will be crucial to maintain stability in these external factors to mitigate risks associated with financial forecasting.

Looking ahead, Petco aims to position itself favorably amidst an evolving consumer landscape. As a retailer dedicated to pet products, Petco serves as the go-to destination for everything pets need to thrive. Their rich history, established over 60 years, emphasizes their commitment to strengthening the bond between pets and their owners.

With more than 1,500 retail locations across the U.S., Mexico, and Puerto Rico, Petco continues to provide quality products, expert advice, and essential services to its customers both in-store and through its online platforms. The company's philanthropic arm, Petco Love, has played an instrumental role in supporting local animal welfare initiatives, successfully facilitating the adoption of over 7 million pets into loving homes.

As the pet industry faces new challenges and opportunities, Petco's strategic decisions regarding debt refinancing will be pivotal in ensuring its continued growth and success in the competitive marketplace. The company remains optimistic as it navigates the uncertainties and looks forward to executing its plans to foster long-term value for its shareholders, employees, and, most importantly, pet families across the globe.

In summary, Petco's announcement on debt refinancing comes as a proactive effort to manage fiscal responsibilities while reaffirming their financial outlook for 2025 amidst a continually changing economic environment.