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1-800-Flowers gets $142.5 million term loan, $200 million revolver
By Angela McDaniels
Tacoma, Wash., Oct. 2 – 1-800-Flowers.com, Inc. entered into a credit agreement on Tuesday that provides for a $142.5 million term loan and a $200 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.
Both the term loan and revolver mature Sept. 30, 2019.
The revolver commitments will be reduced to $100 million from Jan. 1 through Aug. 1 of each fiscal year.
The interest rate is Libor plus 175 basis points to 250 bps. The exact margin is based on the company’s consolidated leverage ratio.
The credit agreement is secured by substantially all of the assets of the company and the subsidiary guarantors.
The lead banks are JPMorgan Chase Bank, NA and Wells Fargo Bank NA. Also participating are Bank of America, NA, Capital One, NA, Citibank, NA, TD Bank, NA, KeyBank, NA, MUFG Union Bank, NA, BBVA Compass and HSBC Bank USA, NA.
The proceeds of the term loan were used to finance the acquisition of Harry & David Holdings, Inc. The proceeds of borrowings under the revolver were used to pay fees and expenses related to the acquisition, to pay off existing Harry & David debt and to refinance 1-800-Flowers’ April 10, 2013 credit agreement.
Borrowings under the revolver made in the future may be used for working capital and general corporate purposes of the company and its subsidiaries, subject to certain restrictions.
1-800-Flowers is a Carle Place, N.Y.-based multi-channel retailer of gifts. Harry & David is a Medford, Ore.-based multi-channel specialty retailer and producer of branded premium gift-quality fruit, gourmet food products and other gifts.
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