Select Comfort Corporation (NASDAQ: SCSS) today announced it has entered into an amended credit agreement with Wells Fargo Bank, National Association. The amended credit agreement is now unsecured, offers less restrictive covenants, reduces costs associated with the line of credit, and extends the maturity date of the credit facility from July 1, 2012, to April 23, 2015. The amended credit facility also contains an accordion feature that allows the company to increase the credit line to $50 million in total availability, which is subject to lender approval.
"Our sustainable and profitable growth formula, along with our strong balance sheet and cash flows, has provided us with the opportunity to improve the terms of our existing credit facility," said Wendy Schoppert, chief financial officer, Select Comfort Corporation. "While we anticipate self-funding our growth through our cash-advantaged business model, the credit agreement continues to provide another layer of flexibility in our overall capital structure."
Additional details of the amended credit agreement are outlined in the company's Current Report on Form 8-K, filed with the Securities and Exchange Commission.
About Select Comfort Corporation
Select Comfort Corporation
(NASDAQ: SCSS) is leading the industry in setting a new standard in
sleep by offering consumers high-quality, innovative and individualized
sleep solutions, which include a complete line of SLEEP NUMBER®
beds and bedding. The company is the exclusive manufacturer, retailer
and servicer of the revolutionary Sleep Number bed, which allows
individuals to adjust the firmness and support of each side at the touch
of a button. The company offers further personalization through its
solutions-focused line of Sleep Number pillows, sheets and other bedding
products. And as the only national specialty-mattress retailer,
consumers can take advantage of an enhanced mattress-buying experience
at one of the approximately 380 Sleep Number stores across the country,
online at sleepnumber.com or via phone at (800) Sleep Number or (800)
753-3768.
Forward-looking Statements
Statements used in this news
release relating to future plans, events, financial results or
performance are forward-looking statements subject to certain risks and
uncertainties including, among others, such factors as general and
industry economic trends; consumer confidence; the effectiveness of the
company's marketing messages; the efficiency of its advertising and
promotional efforts; consumer acceptance of its products, product
quality, innovation and brand image; availability of attractive and
cost-effective consumer credit options; execution of the company's
retail store distribution strategy; the company's dependence on
significant suppliers, and its ability to maintain relationships with
key suppliers, including several sole-source suppliers; the
vulnerability of key suppliers to recessionary pressures, labor
negotiations, liquidity concerns or other factors; rising commodity
costs and other inflationary pressures; industry competition; the
company's ability to continue to improve its product line; warranty
expenses; risks of pending and potentially unforeseen litigation;
increasing government regulations, which have added or will add cost
pressures and process changes to ensure compliance; the adequacy of the
company's management information systems to meet the evolving needs of
its business and evolving regulatory standards applicable to data
privacy and security; the company's ability to attract and retain senior
leadership and other key employees, including qualified sales
professionals; and uncertainties arising from global events, such as
terrorist attacks or a pandemic outbreak, or the threat of such events.
Additional information concerning these and other risks and
uncertainties is contained in the company's filings with the Securities
and Exchange Commission (SEC), including the Annual Report on Form 10-K,
and other periodic reports filed with the SEC. The company has no
obligation to publicly update or revise any of the forward-looking
statements in this news release.
Contacts:
Select Comfort Corporation
Media Contact:
Sarah
Reckard, 763-551-6076
sarah.reckard@selectcomfort.com
or
Investor
Contact:
Edwin Boon, 763-551-7498
investorrelations@selectcomfort.com
