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Blair receives financial commitment of $200mn from PNC
29 Jun '05
2 min read
National leading men's & women's apparel multi-channel direct marketer Blair Corporation received a commitment, subject to final documentation and standard closing conditions, for $200 million in financing from PNC Financial Services Group Inc which will be used to finance, in part, the Company's previously announced proposed stock tender buyback.
Blair intends to pay down this credit facility from PNC with the proceeds received from the previously announced sale of its credit portfolio to Alliance Data Systems Corp. The closing of the Alliance Data transaction remains on target for the fourth quarter of 2005.
Combining the credit facility from PNC with $40 million of Blair's cash reserves, the Company will initiate a stock tender buyback at $42 per share, for the purchase of approximately 4.4 million shares of Blair's outstanding common stock for an aggregate price of approximately $185 million. The Company intends to commence the tender not later than August 1, 2005, and it will be completed shortly thereafter.
"We are pleased to announce that Blair has received this commitment from PNC for $200 million in financing and appreciate this ongoing support from our long-term financial partner," stated Bryan Flanagan, senior vice president and CFO.
"By reaching this agreement, we remain on track to initiate our stock tender buyback and reward our investors," said John Zawacki, president and CEO. "At the same time, we are convinced that a continued focus on our core customers and our ability to remain an independent Warren-based company will maximize shareholder value now and in the future."
Blair intends to pay down this credit facility from PNC with the proceeds received from the previously announced sale of its credit portfolio to Alliance Data Systems Corp. The closing of the Alliance Data transaction remains on target for the fourth quarter of 2005.
Combining the credit facility from PNC with $40 million of Blair's cash reserves, the Company will initiate a stock tender buyback at $42 per share, for the purchase of approximately 4.4 million shares of Blair's outstanding common stock for an aggregate price of approximately $185 million. The Company intends to commence the tender not later than August 1, 2005, and it will be completed shortly thereafter.
"We are pleased to announce that Blair has received this commitment from PNC for $200 million in financing and appreciate this ongoing support from our long-term financial partner," stated Bryan Flanagan, senior vice president and CFO.
"By reaching this agreement, we remain on track to initiate our stock tender buyback and reward our investors," said John Zawacki, president and CEO. "At the same time, we are convinced that a continued focus on our core customers and our ability to remain an independent Warren-based company will maximize shareholder value now and in the future."
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