ANN ARBOR, Mich., March 31, 2010 /PRNewswire via COMTEX/ --
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, 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.
The company also closed on a $90 million term 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 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 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 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.