CARLSBAD, Calif., June 16 /PRNewswire-FirstCall/ -- Phoenix Footwear Group, Inc. , a multi-brand footwear and accessories company, announced today that it has entered into a new $17 million revolving credit facility with Wells Fargo Bank.
The facility replaces the Company's previous facility with Manufacturers and Traders Trust Company which has been retired. The new facility, which is expandable to $20 million with the consent of the lender, has $8.3 million in borrowings, net of cash, outstanding as of June 16, 2008.
The new credit facility provides for interest at prime minus 0.25% or, LIBOR plus 2.4%, for an effective interest rate of 4.75% based upon today's rates.
"We are very pleased with the improved terms of our new credit facility, which reflects our continued balance sheet improvements and provides additional flexibility to further grow our brands," said Cathy Taylor, Phoenix Footwear's Chief Executive Officer. "It is gratifying that a well-regarded bank like Wells Fargo, with its strong retail and apparel industry depth, has shown confidence in our business during the current period of credit uneasiness. This credit facility puts our company in a stronger position to continue to pursue our strategic goals and build value for our shareholders."
About Phoenix Footwear Group, Inc.
Phoenix Footwear Group, Inc., headquartered in Carlsbad, California, designs, develops and markets a diversified selection of men's and women's dress and casual footwear, belts, and other accessories. Phoenix Footwear's brands and licenses include Tommy Bahama Footwear(R), Trotters(R), SoftWalk(R), H.S. Trask(R), Chambers Belts(R) and Wrangler(R). Emphasizing quality, fit and traditional and authentic designs, these brands are primarily sold through department stores, specialty retailers, mass merchants and catalogs. Phoenix Footwear Group, Inc. is traded on the American Stock Exchange under the symbol PXG.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. These forward-looking statements include, but are not limited to, statements regarding the future growth and performance of individual brands, Phoenix Footwear's expected financial performance and condition and/or statements preceded by, followed by or that include the words "believes," "could," "expects," "anticipates," "estimates," "intends," "plans," "projects," "seeks," "exploring, " or similar expressions. Investors are cautioned that all forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Many of these risks and uncertainties are discussed in Phoenix Footwear's Annual Report on Form 10-K for the fiscal year ended December 29, 2007 filed with the Securities and Exchange Commission (the "SEC"), and in any subsequent reports filed with the SEC, all of which are available at the SEC's website at http://www.sec.gov/. These include without limitation: risk associated with claims arising from past divestitures, including indemnification claims; risks associated with future acquisitions, including potential dilution and integration issues; the concentration of Phoenix Footwear's sales to a relatively small group of customers; changing consumer preferences and fashion trends; Phoenix's ability to execute on its growth strategies; competition from other companies in Phoenix Footwear's markets; the potential financial instability of Phoenix Footwear's customers; Phoenix Footwear's ability to protect its intellectual property rights; the risk of losing third party trademark licenses; Phoenix Footwear's ability to manage inventory levels; fluctuations in its financial results as a result of the seasonality in its business; the risks of doing business in international markets; Phoenix Footwear's reliance on independent manufacturers; disruptions in Phoenix Footwear's manufacturing system; the loss of one or more senior executives; fluctuations in the price, availability and quality of raw materials; and a decline in general economic conditions. Although Phoenix Footwear believes that the assumptions underlying the forward- looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward- looking statements included herein, the inclusion of such information should not be regarded as a representation by Phoenix Footwear or any other person that the objectives and plans of Phoenix Footwear will be achieved. All forward-looking statements included in this press release are based on Phoenix Footwear's current expectations and projections about future events, based on information available at the time of the release, and Phoenix Footwear assumes no obligation to update any forward-looking statements.
