1-800-FLOWERS.COM, Inc. (NASDAQ: FLWS) (the “Company”), a leading ecommerce provider of products and services designed to inspire more human expression, connection and celebration, today reported entering into a First Amendment (the “Amendment”) to its Existing Credit Agreement (as defined below) on August 20, 2020 with its existing syndicate of banks led by JPMorgan Chase Bank, N.A., as a lead arranger and bookrunner. The Amendment expands and modifies the credit facilities provided under the Company’s existing Second Amended and Restated Credit Agreement dated May 31, 2019 (the “Existing Credit Agreement”, and the Existing Credit Agreement, as amended by the Amendment, the “Amended Credit Agreement”).
Chris McCann, CEO of 1-800-FLOWERS.COM, Inc., said, “We are very pleased to have expanded our credit facilities and further strengthened our balance sheet. Combined with the significant cash flows we are generating, the Amended Credit Agreement provides us with flexibility to continue growing our business by investing in our existing operating platform and seeking acquisitions that can accelerate our top and bottom-line growth, such as our recently completed acquisition of PersonalizationMall.com.”
The Amended Credit Agreement increases the commitments under the Company’s revolving credit facility to $250 million, up from $200 million under the Existing Credit Agreement, and adds a new term loan, in a principal amount of $100 million, in addition to the Company’s existing term loan which currently has $95 million principal amount outstanding. The working capital sublimit under the Amended Credit Agreement is $200 million, and the revolving credit facility contains a seasonal reduction to $125 million for the period from January 1 through August 1 for each fiscal year of the Company, reflecting increases from the $175 million and $100 million, respectively, in the Existing Credit Agreement. The new term loan, the existing term loan and the revolving credit facility are co-terminus with a maturity date of May 31, 2024.
The Amended Credit Agreement is secured by substantially all the assets of the Company and certain of its U.S. subsidiaries that are guarantors thereunder. The interest rates applicable to borrowings under the revolving credit facility and the existing term loan were not modified by the Amendment. Borrowings under the new term loan bear interest in accordance with the terms of the Amended Credit Agreement. Interest on all borrowings are based on the Company’s consolidated leverage ratio.
The Company currently has zero borrowings under the revolving credit facility and believes that the revolving credit facility, together with cash flows from operations, will be sufficient to fund its working capital requirements going forward.
About 1-800-FLOWERS.COM, Inc.
1-800-FLOWERS.COM, Inc. is a leading provider of gifts designed to help customers express, connect and celebrate. The Company’s business platform features our all-star family of brands, including: 1-800-Flowers.com®, 1-800-Baskets.com®, Cheryl’s Cookies®, Harry & David®, PersonalizationMall.com®, Shari’s Berries®, FruitBouquets.com®, Moose Munch®, The Popcorn Factory®, Wolferman’s Bakery? and Simply Chocolate®. We also offer top-quality steaks and chops from Stock Yards®. Through the Celebrations Passport® loyalty program, which provides members with free standard shipping and no service charge across our portfolio of brands, 1-800-FLOWERS.COM, Inc. strives to deepen relationships with customers. The Company also operates BloomNet®, an international floral service provider offering a broad-range of products and services designed to help professional florists grow their businesses profitably; Napco?, a resource for floral gifts and seasonal décor; and DesignPac Gifts, LLC, a manufacturer of gift baskets and towers. 1-800-FLOWERS.COM, Inc. was recognized as the 2019 Mid-Market Company of the Year by CEO Connection. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS. For more information, visit 1800flowersinc.com or follow @1800FLOWERSInc on Twitter.
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 current expectations or beliefs concerning future events and can generally be identified using statements that include words such as “estimate,” “expects,” “project,” “believe,” “anticipate,” “intend,” “plan,” “foresee,” “forecast,” “likely,” “will,” “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, which could cause actual results to differ materially from the results expressed or implied in the forward-looking statements, including, but not limited to, statements regarding the impact of the Covid-19 pandemic on the Company; its ability to leverage its operating platform and reduce operating expense ratio; its ability to successfully integrate acquired businesses and assets; its ability to cost effectively acquire and retain customers; the outcome of contingencies, including legal proceedings in the normal course of business; its ability to compete against existing and new competitors; its ability to manage expenses associated with sales and marketing and necessary general and administrative and technology investments; and general consumer sentiment and economic conditions that may affect levels of discretionary customer purchases of the Company’s products. The Company undertakes no obligation to publicly update any of the forward-looking statements, whether because of new information, future events or otherwise, made in this press release or in any of its SEC filings. Consequently, you should not consider any such list to be a complete set of all potential risks and uncertainties. For a more detailed description of these and other risk factors, 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.
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