1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS), the world’s leading florist and
gift shop, today announced that on April 16, 2010, it entered into an
amended and restated credit agreement with a syndicate of banks and
other financial institutions led by JPMorgan Chase Bank, N.A. The new
credit facility includes a prepayment of $12 million which reduces the
Company’s outstanding term loan debt to $60 million. In addition, the
amended and restated agreement reduces the Company’s revolving credit
line from a previous commitment of $125 million (seasonally adjusted to
$75 million) to a commitment of $75 million (seasonally adjusted to
$40). The Company currently has zero borrowings under the revolving
credit line and believes that the credit line, together with cash flows
from operations, will be more than sufficient to fund its working
capital requirements going forward.
The amended and restated credit facility also revises certain financial
and non-financial covenants, providing additional flexibility going
forward. Under the terms of the amended and restated agreement, the
interest rate the Company will pay on the outstanding portion of its
term debt and revolver is LIBOR plus a range of 300 to 400 basis points
based on the Company’s leverage ratio. The initial interest rate on its
current term debt of $60 million will be LIBOR + 350 basis points. The
Company anticipates that the spread over LIBOR will decline as it
reduces its borrowings through regularly scheduled quarterly debt
payments. All borrowings under the credit facility are guaranteed by the
material subsidiaries of the Company and secured by the assets and stock
of its subsidiaries.
Jim McCann, CEO, said, "We are very pleased that, despite the
challenging economy, our business continues to generate strong cash
flows enabling us to aggressively reduce our debt. These cash flows,
combined with the proceeds from the sale of our Home and Children’s Gift
division in January, have enabled us to pay down approximately $70
million on our term debt over the past 18 months and further strengthen
our balance sheet. Importantly, while we have been reducing our debt, we
have also continued to invest and innovate to achieve future growth as
evidenced by the successful launch of our new 1-800-Baskets.com brand
and our industry-leading initiatives in mobile commerce.”
Special Note Regarding
Forward-Looking Statements:
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward- looking statements represent the Company’s expectations or
beliefs concerning future events and can generally be identified by the
use of statements that include words such as "estimate,” "project,”
"believe,” "anticipate,” "intend,” "plan,” "foresee,” "likely,” "will,”
"goal,” "target” or similar words or phrases. These forward-looking
statements are subject to risks, uncertainties and other factors, many
of which are outside of the company’s control that could cause actual
results to differ materially from the results expressed or implied in
the forward-looking statements. For a more detailed description of these
and other risk factors, please refer to the Company’s SEC filings
including the Company’s Annual Reports on Form 10-K and its Quarterly
Reports on Form 10-Q. The Company expressly disclaims any intent or
obligation to update any of the forward-looking statements made in this
release or in any of its SEC filings except as may be otherwise stated
by the Company.
About 1-800-FLOWERS.COM, Inc.
1-800-FLOWERS.COM, Inc. is the world’s leading florist and gift shop.
For more than 30 years, 1-800-FLOWERS® (1-800-356-9377 or www.1800flowers.com)
has been providing customers with fresh flowers and the finest selection
of plants, gift baskets, gourmet foods, confections, balloons and plush
stuffed animals perfect for every occasion. As always, 100% satisfaction
is guaranteed. 1-800-FLOWERS.COM earned the 2009 Gold Award in
the Online Flower Delivery category from TopTenREVIEWS; the Company’s
Mobile Flower & Gift Center was named winner of the RIS (Retail Info
Systems) 2010 Mobile App of the Year Award in the "Best Shopping”
category and the Company was recognized by Computerworld magazine
as a Premier 100 IT Leader for 2010. The Company’s BloomNet®
international floral wire service (www.mybloomnet.net)
provides a broad range of quality products and value-added services
designed to help professional florists grow their businesses profitably.
The 1-800-FLOWERS.COM, Inc. "Gift Shop” also includes gourmet gifts such
as popcorn and specialty treats from The Popcorn Factory®
(1-800-541-2676 or www.thepopcornfactory.com);
cookies and baked gifts from Cheryl&Co.® (1-800-443-8124
or www.cherylandco.com);
premium chocolates and confections from Fannie May®
confections brands (www.fanniemay.com
and www.harrylondon.com);
wine gifts from The Winetasting NetworkSM (www.winetasting.com)
and Geerlings&WadeSM (www.geerwade.com);
gift baskets from 1-800-BASKETS.COM® (www.1800baskets.com)
as well as Celebrations® (www.celebrations.com),
a new premier online destination for fabulous party ideas and planning
tips. 1-800-FLOWERS.COM, Inc. is involved in a broad range of corporate
social responsibility initiatives including continuous expansion and
enhancement of its environmentally-friendly "green” programs as well as
various philanthropic and charitable efforts. Shares in
1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market,
ticker symbol: FLWS.
