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8-K - FORM 8-K - Speed Commerce, Inc. | c54663e8vk.htm |
EX-10.1 - EX-10.1 - Speed Commerce, Inc. | c54663exv10w1.htm |
Exhibit 99.1
For Additional Information:
Navarre Investor Relations
763-535-8333
ir@navarre.com
Navarre Investor Relations
763-535-8333
ir@navarre.com
NAVARRE CORPORATION ANNOUNCES
COMPLETION OF DEBT REFINANCING
COMPLETION OF DEBT REFINANCING
MINNEAPOLIS, MN November 12, 2009 Navarre Corporation (NASDAQ: NAVR) today announced that it
has entered into a three year $65.0 million revolving credit facility with Wells Fargo Foothill,
part of Wells Fargo & Company (NYSE: WFC), as agent and lender. Capital One Leverage Finance
Corporation is also participating as a lender in the new facility.
Proceeds of this transaction have been used to pay off the Companys previous debt facility, which
was due to expire next June, and will be available for general working capital purposes. This
revolving facility is secured by a first priority security interest in all of the Companys assets
and will mature in November 2012. During the quarter ending December 31, 2009, the Company will
recognize a non-cash pre-tax charge of $325,000 related to debt acquisition costs associated with
the previous credit facility.
We are pleased to have completed this refinancing, particularly considering todays restrictive
credit markets, said J. Reid Porter, Executive Vice President and Chief Financial Officer. We now
have financing with fewer, less restrictive covenants that improves the Companys financial
flexibility and ability to grow. We are pleased to be working with lenders that have a solid
understanding of our business and we look forward to working with Wells Fargo Foothill and Capital
One in the pursuit of our strategic objectives.
We are glad to have been able to structure an asset-based loan to support Navarres plans for
success, said Eran Cohen, Wells Fargo Foothill managing director. This facility provides Navarre
with the financial flexibility to continue to grow its market share even during these challenging
economic times.
About Navarre Corporation
Navarre® Corporation is a publisher and distributer of a wide range of computer software
and home entertainment products. The Company publishes animé content through FUNimation
Entertainment® and computer software through Encore®. Navarre Distribution
Services distributes computer software, DVD video, video games and accessories; and Navarre
Logistical Services provides value-added services to the companys publishing companies and
third-party publishers. Navarre was founded in 1983 and is headquartered in New Hope, Minnesota.
Additional information regarding Navarre can be found at http://www.navarre.com.
About Wells Fargo Foothill
Wells Fargo Foothill is a leading provider of senior secured financing to middle-market companies
across the United States and Canada, offering flexible, innovative credit facilities from $10
million to $1 billion and more. It is part of Wells Fargo & Company, a diversified financial
services company with $1.3 trillion in assets, providing banking, insurance, investments, mortgage
and consumer finance through more than 10,000 stores, over 12,000 ATMs and the Internet
(wellsfargo.com) across North America and internationally. For more information, visit
wellsfargofoothill.com.
Safe Harbor
The statements in this press release that are not strictly historical are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are
intended to be covered by the safe harbors provided therein. The forward-looking statements are
subject to risks and uncertainties, and the actual results that the Company achieves may differ
materially from these forward-looking statements due to such risks and uncertainties, including,
but not limited to: difficult economic conditions that adversely affect the Companys customers and
vendors; the Companys revenues being derived from a small group of customers; a pending
investigation by the U.S. Securities and Exchange Commission (the SEC) or litigation arising out
of this investigation may subject the Company to significant costs; the seasonal nature of the
Companys business; the potential for the Company to incur significant additional costs and to
experience operational and logistical difficulties in connection with its new ERP system; the
Companys dependence on significant vendors; uncertain growth in the publishing segment; the
Companys ability to meet significant working capital requirements related to distributing
products; and the Companys ability to compete effectively in the highly competitive distribution
and publishing industries. In addition to these, a detailed statement of risks and uncertainties is
contained in the Companys reports to the Securities and Exchange Commission, including in
particular the Companys Form 10-K filings, as well as its other SEC filings and public
disclosures.
Investors and shareholders are urged to read this press release carefully. The Company can offer no
assurances that any projections, assumptions or forecasts made or discussed in this press release
will be met, and investors should understand the risks of investing solely due to such projections.
The forward-looking statements included in this press release are made only as of the date of this
report and the Company undertakes no obligation to update these forward-looking statements to
reflect subsequent events or circumstances.
Investors and shareholders may obtain free copies of the public filings through the website
maintained by the SEC at http://www.sec.gov/ or at one of the SECs other public reference rooms in
Washington D.C., New York, New York or Chicago, Illinois. Please contact the SEC at 1-800-SEC-0330
for further information with respect to the SECs public reference rooms.