| Jones Apparel Group, Inc. Completes $600 Million Amended and Restated Bank Credit Facility |
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12/28/2008 5:22:09 PM |
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NEW YORK -- Jones Apparel Group, Inc.
(NYSE: JNY)("Jones") today announced that it has successfully completed an
amendment to its existing $1.25 billion revolving credit facilities. J.P.
Morgan Securities Inc. and Citigroup Global Markets Inc. were Joint Lead
Arrangers in the amendment process. Other titled roles included JPMorgan
Chase Bank, N.A. and Citibank N.A. as Syndication Agents, Wachovia Bank,
National Association as Administrative Agent and Bank of America, N.A.,
Barclays Bank PLC and SunTrust Bank as Documentation Agents. The amendment
process received broad support with substantially all banks and other
financial institutions participating.
Under the amended terms and conditions, the $750 million facility
maturing in May 2010 was reduced to $600 million, reflecting Jones' current
business needs, and the $500 million facility that matures in June 2009 was
terminated. The existing financial covenants have been adjusted to provide
Jones with greater flexibility in the operation of its businesses during
these unprecedented economic times. Fees and interest rates under the
facility increased to current market rates, and Jones will grant certain
security for borrowings under the facility. In addition, Jones will pay
customary execution fees.
The credit facilities are primarily used as backing for the issuance of
trade letters of credit and other supply chain purposes, but also may be
used for working capital and general corporate purposes. Currently, no cash
borrowings are outstanding under the existing facilities.
John T. McClain, Chief Financial Officer, stated: "We are pleased with
the overwhelming support of the financial institutions associated with the
amendment process and believe it was prudent to pursue amendments now that
allow financial flexibility in the current uncertain economic environment.
Our businesses have generated and maintained a significant amount of cash
on hand, and we believe that, combined with the $600 million of committed
bank credit, provides us with the financial flexibility we need to continue
to pursue our multi-brand, multi-channel diversification strategy."
Jones Apparel Group, Inc. (http://www.jonesapparel.com) is a leading
designer, marketer and wholesaler of branded apparel, footwear and
accessories. The Company also markets directly to consumers through its
chain of specialty retail and value-based stores. The Company's nationally
recognized brands include Jones New York, Nine West, Anne Klein, Gloria
Vanderbilt, Kasper, Bandolino, Easy Spirit, Evan Picone, l.e.i., Energie,
Enzo Angiolini, Joan & David, Mootsies Tootsies, Sam & Libby, Napier,
Judith Jack, Albert Nipon and Le Suit. The Company also markets costume
jewelry under the Givenchy brand licensed from Givenchy Corporation,
footwear under the Dockers Women brand licensed from Levi Strauss & Co.,
and apparel under the Rachel Roy brand licensed from Rachel Roy IP Company,
LLC. Each brand is differentiated by its own distinctive styling, pricing
strategy, distribution channel and target consumer. The Company contracts
for the manufacture of its products through a worldwide network of quality
manufacturers. The Company has capitalized on its nationally known brand
names by entering into various licenses for several of its trademarks,
including Jones New York, Evan Picone, Anne Klein New York, Nine West,
Gloria Vanderbilt and l.e.i., with select manufacturers of women's and
men's products which the Company does not manufacture. For more than 30
years, the Company has built a reputation for excellence in product quality
and value, and in operational execution.
Certain statements contained herein are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
All statements regarding the Company's expected financial position,
business and financing plans are forward-looking statements. The words
"believes," "expect," "plans," "intends," "anticipates" and similar
expressions identify forward-looking statements. Forward-looking statements
also include representations of the Company's expectations or beliefs
concerning future events that involve risks and uncertainties, including:
-- those associated with the effect of national and regional economic
conditions;
-- lowered levels of consumer spending resulting from a general economic
downturn or lower levels of consumer confidence;
-- the tightening of the credit markets and the Company's ability to
obtain credit on favorable terms;
-- the performance of the Company's products within the prevailing retail
environment;
-- customer acceptance of both new designs and newly-introduced product
lines;
-- the Company's reliance on a few department store groups for large
portions of the Company's business;
-- consolidation of the Company's retail customers;
-- financial difficulties encountered by customers;
-- the effects of vigorous competition in the markets in which the
Company operates;
-- the Company's ability to attract and retain qualified executives and
other key personnel;
-- the Company's reliance on independent foreign manufacturers;
-- changes in the costs of raw materials, labor, advertising and
transportation;
-- the general inability to obtain higher wholesale prices for the
Company's products that the Company has experienced for many years;
-- the uncertainties of sourcing associated with an environment in which
general quota has expired on apparel products;
-- the Company's ability to successfully implement new operational and
financial computer systems; and
-- the Company's ability to secure and protect trademarks and other
intellectual property rights.
A further description of these risks and uncertainties and other
important factors that could cause actual results to differ materially from
the Company's expectations can be found in the Company's Annual Report on
Form 10-K for the year ended December 31, 2007, including, but not limited
to, the Statement Regarding Forward-Looking Disclosure and Item 1A -- Risk
Factors therein, and in the Company's other filings with the Securities and
Exchange Commission. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, such
expectations may prove to be incorrect. The Company does not undertake to
publicly update or revise its forward-looking statements as a result of new
information, future events or otherwise. |
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