CARLE PLACE, N.Y.--(BUSINESS WIRE)--1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS - News), the world’s leading florist and gift shop, today reported that on August 28, 2008, the Company entered into a $293 million amended and restated credit agreement with a syndicate of banks and other financial institutions led by JPMorgan Chase Bank, N.A. The credit facility provides for borrowings of up to $293 million and is comprised of $165 million available under the revolving credit commitment and $128 million in term loan debt.The credit facility contains certain financial and non-financial covenants relating to the Company’s operations, including maintenance of certain financial ratios. The Company may choose to pay interest at a rate per annum equal to, either the applicable alternate base rate or an adjusted applicable LIBOR rate plus an applicable margin (each determined based on the Company’s consolidated leverage ratio). Borrowings under the credit facility are guaranteed by the material subsidiaries of the Company.
Jim McCann, CEO said, “We are very pleased to have completed this amendment to our existing bank credit agreement at favorable rates and terms, particularly considering the current uncertainty in the credit markets. It is worth noting that we were able to attract a strong bank syndicate, led by J.P. Morgan, who were attracted to the strength of our brand and our outlook for continued strong earnings growth. This expansion further strengthens our balance sheet and, combined with our increasing cash flow generation, positions us well to continue our growth strategy in fiscal 2009 and beyond.” McCann said that in addition to internal initiatives in marketing and merchandising designed to drive organic growth, the Company will continue to pursue acquisition opportunities that provide “outsized returns on capital deployed.”
About 1-800-FLOWERS.COM, Inc.
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