Borders Survived the Credit Crunch

From the press release:

Borders Group, Inc. (NYSE: BGP) today announced that it has entered into an amended and restated revolving credit agreement.  The new, $700 million senior secured asset-based credit facility matures in March 2014 and replaces the company's existing revolving credit agreement, which would have matured in July 2011.  Banc of America Securities LLC, Wells Fargo Retail Finance, LLC, J.P. Morgan Securities Inc. and GE Capital Markets, Inc. acted as joint lead arrangers and book runners. Bank of America, N.A. will serve as the administrative agent.  Borrowings under the facility will be used for general corporate purposes.

The company also closed on a $90 million term loan credit facility, which will mature in March 2014 with the exception of $10 million of that facility, which Borders will amortize over four months beginning in September and concluding in December of this year. Banc of America Securities LLC acted as sole arranger and book runner on the facility and GA Capital LLC will serve as the administrative agent. Lenders are expected to include an affiliate of Stone Tower Capital LLC, a $39 billion credit focused asset management firm; funds managed by Tennenbaum Capital Partners, LLC, a Santa Monica-based special situations investment firm; and Gordon Brothers Merchant Partners.

About Nate Hoffelder (11221 Articles)
Nate Hoffelder is the founder and editor of The Digital Reader:"I've been into reading ebooks since forever, but I only got my first ereader in July 2007. Everything quickly spiraled out of control from there. Before I started this blog in January 2010 I covered ebooks, ebook readers, and digital publishing for about 2 years as a part of MobileRead Forums. It's a great community, and being a member is a joy. But I thought I could make something out of how I covered the news for MobileRead, so I started this blog."

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