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8-K - FORM 8-K - BON TON STORES INC | c93038e8vk.htm |
EX-10.1 - EXHIBIT 10.1 - BON TON STORES INC | c93038exv10w1.htm |
EX-10.3 - EXHIBIT 10.3 - BON TON STORES INC | c93038exv10w3.htm |
EX-10.2 - EXHIBIT 10.2 - BON TON STORES INC | c93038exv10w2.htm |
Exhibit 99.1
N E W S R E L E A S E
THE BON-TON STORES, INC. ANNOUNCES
$75 MILLION SECOND LIEN TERM LOAN CREDIT FACILITY
OVERSUBSCRIPTION FOR AMENDED AND RESTATED REVOLVING CREDIT FACILITY
$75 MILLION SECOND LIEN TERM LOAN CREDIT FACILITY
OVERSUBSCRIPTION FOR AMENDED AND RESTATED REVOLVING CREDIT FACILITY
York, PA, November 18, 2009 The Bon-Ton Stores, Inc. (NASDAQ: BONT) today announced that it
has received commitments in excess of the commitment amount sought from lenders for a $675 million
3.5-year senior secured asset-based credit facility (the New Credit Facility) that will replace
the Companys existing $800 million asset-based revolving credit facility (the Existing Credit
Facility) that is scheduled to mature in March 2011. The commitments are subject to standard and
customary closing requirements. Bank of America, N.A. will serve as Administrative Agent on the
New Credit Facility. Bank of America Merrill Lynch; GE Capital Markets, Inc.; and Wells Fargo
Securities, LLC are acting as Joint Lead Arrangers and Joint Book Runners on the New Credit
Facility. The Company expects to close on the New Credit Facility in early December of this year.
The Company also today announced that it has closed on a $75 million Second Lien Term Loan
Credit Facility, which will mature on November 18, 2013. The agents are Sankaty Advisors, LLC; GB
Merchant Partners, LLC; and GA Capital, LLC. Bank of America Merrill Lynch acted as Lead Arranger
for the facility. Proceeds from the transaction will be used to increase liquidity by paying down
a portion of the outstanding borrowings under the Existing Credit Facility and related fees and
expenses. The only financial covenant in the Second Lien Term Loan Credit Facility is a minimum
borrowing availability of $75 million under the Existing Credit Facility (and the New Credit
Facility when it becomes effective). The Existing Credit Facility was amended to permit the Second
Lien Term Loan Credit Facility.
Keith Plowman, Executive Vice President and Chief Financial Officer, commented, We are very
pleased with the strong level of support from our lending group of bank institutions and second
lien investors. We value these relationships, which we believe demonstrate the confidence the
lending group has in our Company and our ability to effectively manage our business through the
challenging macroeconomic environment. The new facilities provide us with increased liquidity to
support the growth of our Company.
The Bon-Ton Stores, Inc., with headquarters in York, Pennsylvania and Milwaukee, Wisconsin,
operates 279 stores, including 12 furniture galleries, in 23 states in the Northeast, Midwest and
upper Great Plains under the Bon-Ton, Bergners, Boston Store, Carson Pirie Scott, Elder-Beerman,
Herbergers and Younkers nameplates and, in the Detroit, Michigan area, under the Parisian
nameplate. The stores offer a broad assortment of brand-name fashion apparel and accessories for
women, men and children, as well as cosmetics and home furnishings. For further information,
please visit the investor relations section of the Companys website at
http://investors.bonton.com.
Certain information included in this press release contains statements that are forward-looking
within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements, which may be identified by words such as may, could, will, plan, expect,
anticipate, estimate, project, intend or other similar expressions, involve important risks
and uncertainties that could significantly affect results in the future and, accordingly, such
results may differ from those expressed in any forward-looking statements made by or on behalf of
the Company. Factors that could cause such differences include, but are not limited to, risks
related to retail businesses generally; a significant and prolonged deterioration of general
economic conditions which could negatively impact the Company, including the potential write-down
of the current valuation of intangible assets and deferred taxes; changes in the terms of the
Companys proprietary credit card program; potential increase in pension obligations; consumer
spending patterns, debt levels, and the availability and cost of consumer credit; additional
competition from existing and new competitors; inflation; changes in the costs of fuel and other
energy and transportation costs; weather conditions that could negatively impact sales;
uncertainties associated with expanding or remodeling existing stores; the ability to attract and
retain qualified management; the dependence upon relationships with vendors and their factors; a
security breach; the ability to reduce SG&A expenses; the incurrence of unplanned capital
expenditures; and the ability to realize the expected benefits from our planned changes in
operating structure and the ability to obtain financing for working capital, capital expenditures
and general corporate purposes. Additional factors that could cause the Companys actual results
to differ from those contained in these forward-looking statements are discussed in greater detail
under Item 1A of the Companys Form 10-K filed with the Securities and Exchange Commission.
CONTACT:
Mary Kerr
Vice President
Investor & Public Relations
(717) 751-3071
mkerr@bonton.com
Mary Kerr
Vice President
Investor & Public Relations
(717) 751-3071
mkerr@bonton.com