Philadelphia Mothers Work announced that it has prepaid $8 million of its senior secured Term Loan due March 2013, pursuant to the optional prepayment provisions of the Term Loan.
Together with its Term Loan prepayment of $5 million on March 19, 2008, the company has prepaid $13 million of its Term Loan over the past three months. Pursuant to the provisions of the Term Loan, such prepayments were made without any prepayment premium or penalty.
Giving effect to these prepayments, the company's indebtedness under the Term Loan is now $76.1 million.
“We believe this action indicates our continued commitment to increase shareholder value and reflects our confidence in our generation of free cash flow despite a challenging overall economic environment,” said Edward M. Krell, COO and CFO of Mothers Work.