Pier 1 amends credit agreement; closes $200 million loan

Fort Worth, Texas – Pier 1 Imports (U.S.) Inc., a subsidiary of Pier 1 Imports Inc., has completed the amendment of its $350 million senior secured revolving credit facility and syndicated and closed a previously announced $200 million seven-year senior secured term loan B.

Proceeds from the $200 million term loan are intended to be used for general corporate purposes, including, among other things, working capital needs, capital expenditures, cash dividends and repurchases of the company’s common stock.

Pier 1 Imports (U.S.), Inc., amended its $350 million secured, asset-based revolving credit facility to allow borrowings under a new term loan facility. As of April 30, 2014, Pier 1 had no cash borrowings under the revolving credit facility and $43.0 million in outstanding letters of credit.

Pier 1 Imports (U.S.) Inc. also entered into a new $200 million senior secured term loan B facility with Bank of America N.A., as administrative and collateral agent, Merrill Lynch, Pierce, Fenner & Smith Inc. and Wells Fargo Securities LLC, as joint lead arrangers and joint lead bookrunners, and various other agents. The term loan facility matures on April 30, 2021, and does not require the company to comply with any financial maintenance covenants, but contains certain customary representations and warranties, affirmative and negative covenants, and provisions relating to events of default.


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