Pier 1 Imports secures $325mn five-year credit facility

23 Nov '05

1 min read

Texas based home furnishing maker Pier 1 Imports Inc announces a new $325 million five-year secured credit facility. This facility is secured by the Company's merchandise inventory and major credit card receivables.

It replaces the Company's existing unsecured bank facilities including its $125 million revolving credit facility, which would have expired in August 2006, its $120 million uncommitted letter of credit facility, and approximately $52 million of credit lines used to issue other special-purpose letters of credit. The new facility initially bears interest at LIBOR plus 1.0 Percent for cash borrowings.

The new facility does not require the Company to comply with financial covenants unless the facility is more than 90 Percent utilized. The facility will be used for general corporate purposes and the Company expects to continue funding its working capital requirements through cash flow from operations, bank facilities, and sales of proprietary credit card receivables.

Pier 1 Imports Inc is North America's largest specialty retailer of imported decorative home furnishings and gifts with Pier 1 Imports stores in 49 states, Puerto Rico, Canada, and Mexico; The Pier stores in the United Kingdom and Ireland; and Pier 1 kids stores.

Pier 1 Imports Inc

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