ANN ARBOR, Mich., April 9 /PRNewswire-FirstCall/ -- Borders Group, Inc. today announced that it has closed on the revised financing agreement with Pershing Square Capital Management, L.P. that was announced in the company's April 7, 2008 news release. The agreement includes a $42.5 million senior secured term loan, a "put" right of $135 million for Borders Group's international subsidiaries (subject to the satisfaction or waiver of certain conditions), and 9.55 million warrants to purchase common stock initially issued to Pershing Square, exercisable at $7.00 per share, subject to adjustment. The agreement provides for a future issuance, under certain circumstances, of 5.15 million additional warrants exercisable at $7.00 per share, subject to adjustment.
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The financing agreement will be further described in a Form 8-K report, which Borders Group intends to file by the end of this week.
About Borders Group
Headquartered in Ann Arbor, Mich., Borders Group, Inc. is a $3.8 billion retailer of books, music and movies with more than 1,100 stores and over 30,000 employees worldwide. More information on the company is available at http://www.bordersgroupinc.com/.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. One can identify these forward-looking statements by the use of words such as "projects," "expect," "estimated," "look toward," "going forward," "continuing," "planning," "returning," "guidance," "goal," "will," "may," "intend," "anticipates," and other words of similar meaning. One can also identify them by the fact that they do not relate strictly to historical or current facts. These statements are likely to address matters such as the company's future financial performance (including earnings per share growth, EBIT margins and inventory turns, liquidity, same-store sales growth, and anticipated capital expenditures and depreciation and amortization amounts), its exploration of strategic alternatives, its financing agreement with Pershing Square and the benefits thereof, strategic plans and expected financing and benefits relating to such plans (including steps to be taken to improve the performance of domestic superstores, the downsizing of the Waldenbooks Specialty Retail Segment and the development of a proprietary Web site). These statements are subject to risks and uncertainties that could cause actual results and plans to differ materially from those included in the company's forward-looking statements. These risks and uncertainties include, but are not limited to, consumer demand for the company's products, particularly during the holiday season, which is believed to be related to general economic and geopolitical conditions, competition and other factors; the availability of adequate capital to fund the company's operations and to carry out its strategic plans; the performance of the company's information technology systems and the development of improvements to the systems necessary to implement the company's strategic plan, and, with respect to the exploration of strategic alternatives including the sale of certain parts of the company or the sale of the entire company, the ability to attract interested third parties.
The company's periodic reports filed from time to time with the Securities and Exchange Commission contain more detailed discussions of these and other risk factors that could cause actual results and plans to differ materially from those included in the forward-looking statements, and those discussions are incorporated herein by reference. The company does not undertake any obligation to update forward-looking statements.
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