1-800-Flowers enters amended $200 million facility with JPMorgan

By Jennifer Chiou

New York, April 11 - 1-800-Flowers.com Inc. entered into an amended and restated credit agreement providing for a $200 million revolving line of credit through JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings will bear interest at Libor plus 150 basis points to 225 bps, depending on leverage. Specifically, if the company's consolidated leverage ratio is less than or equal to 1.5:1.0, the Libor spread is 150 bps; if greater than 1.5:1.0 but less than or equal to 2.5:1.0, Libor plus 175 bps; if greater than 2.5:1.0 but less than or equal to 3.5:1.0, Libor plus 200 bps; and if greater than 3.5:1.0, Libor plus 225 bps.

The rate is down from Libor plus 300 bps to 375 bps under the previous credit agreement.

The commitment fee is 20 bps to 35 bps per year.

"This new credit facility, with its very advantageous borrowing costs, reflects the strength of our business model, including the growing cash flows that enabled us to pay off more than $100 million in debt over the past several years, despite the challenging economic environment," chief executive officer Jim McCann said in a news release.

"As we have stated in our recent press releases, we expect to finish our current fiscal year at the end of June with a positive cash position on our balance sheet and zero debt outstanding."

1-800-Flowers is a Carle Place, N.Y.-based florist and gift retailer.

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