ANN ARBOR, Mich., March 31 /PRNewswire-FirstCall/ -- Borders Group, Inc. today announced that it has entered into an amended and restated revolving credit agreement. The new, $700 million senior secured asset-based credit facility matures in March 2014 and replaces the company's existing revolving credit agreement, which would have matured in July 2011. Banc of America Securities LLC, Wells Fargo Retail Finance, LLC, J.P. Morgan Securities Inc. and GE Capital Markets, Inc. acted as joint lead arrangers and book runners. Bank of America, N.A. will serve as the administrative agent. Borrowings under the facility will be used for general corporate purposes.
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The company also closed on a $90 million term loan credit facility, which will mature in March 2014 with the exception of $10 million of that facility, which Borders will amortize over four months beginning in September and concluding in December of this year. Banc of America Securities LLC acted as sole arranger and book runner on the facility and GA Capital LLC will serve as the administrative agent. Lenders are expected to include an affiliate of Stone Tower Capital LLC, a $39 billion credit focused asset management firm; funds managed by Tennenbaum Capital Partners, LLC, a Santa Monica-based special situations investment firm; and Gordon Brothers Merchant Partners.
Separately, Borders Group has met its obligation to Pershing Square Capital Management, L.P. for payment of the $42.5 million senior secured term loan due April 1.
Details of the financing arrangements will be included in a Form 8-K to be filed with the Securities and Exchange Commission.
"We are pleased to have the continued support of our lending group and term loan investors," said Borders Group Chief Financial Officer Mark Bierley. "With the completion of these transactions, the company can turn its focus to driving sales growth and improving profitability."
Conference Call Tomorrow, April 1 at 10:30 a.m.
Borders Group will hold a conference call tomorrow, April 1 at 10:30 a.m. Eastern. The call will be webcast by Thomson Financial and can be accessed at http://www.bordersgroupinc.com/. A replay will be accessible on the Web site through April 30. In addition, a replay phone service will be available toll-free at 800-221-1283 or for international calls at 402-220-3753. The phone service will be available through April 16 until 11:59 p.m. Eastern.
About Borders Group
Headquartered in Ann Arbor, Mich., Borders Group, Inc. is a leading specialty retailer of books as well as other educational and entertainment items. The company employs approximately 19,500 throughout the U.S., primarily in its Borders® and Waldenbooks® stores. Online shopping is offered through borders.com. Find author interviews and vibrant discussions of the products we and our customers are passionate about online at facebook.com/borders, twitter.com/borders and youtube.com/bordersmedia. For more information about the company, visit borders.com/media.
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 "expected," "planning," "possibility," "opportunity," "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 condition and performance (including earnings per share, the profitability of Waldenbooks, liquidity, cash flows, debt levels, sales, inventory levels and capital expenditures), its cost reduction initiatives and plans for store closings and the expansion of product categories, including eBook content. 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--including vendor credit--to fund the company's operations and to carry out its strategic plans; adverse litigation results or other claims and the performance of the company's information technology systems.
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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Borders Group, Inc.
CONTACT: Investor, Mark Bierley, +1-734-477-4105, or Media, Anne Roman,
+1-734-477-1392, both of Borders Group, Inc.
Web Site: http://www.bordersgroupinc.com/
