Metris obtains $850 million credit line

By Sara Rosenberg

New York, March 19 - Metris Cos. Inc.'s wholly owned subsidiary Metris Receivables Inc. obtained $850 million of 364-day warehouse financing facilities with its bank groups.

Availability under these facilities is subject to various conditions, including a net reduction of receivables in the Metris Master Trust, according to a news release.

Furthermore, Metris has terminated its $170 million revolver.

And, lastly the company announced that that Metris and its subsidiary, Direct Merchants Credit Card Bank entered into an operating agreement with the Office of the Comptroller of the Currency that includes liquidity and capital maintenance provisions for the bank. Under the agreement, Metris will receive a dividend from its bank in the amount of $155 million.

"We are pleased to announce these agreements," said David Wesselink, Metris chairman and chief executive officer, in a news release. "They provide another step forward in returning the company to profitability."

Metris is a Minnetonka, Minn. provider of financial products and services.

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