ValueVision Media Increases PNC Bank Credit Facility by $25 Million
06 February 2014 - 12:03AM
Marketwired
ValueVision Media Increases PNC Bank Credit Facility by $25 Million
MINNEAPOLIS, MN--(Marketwired - Feb 5, 2014) - ValueVision
Media, Inc. (NASDAQ: VVTV), a multichannel retailer operating as
ShopHQ, today announced it has increased the size of its credit
facility with PNC Bank, National Association (NYSE: PNC), from $50
million to $75 million. The $25 million credit facility expansion
consists of a $10 million increase to the Company's current
revolving credit facility from $50 million to $60 million and
provides conditions for a $15 million term loan on which
ValueVision may draw to support the potential expansion of its
Bowling Green, Kentucky distribution center. The credit facility's
maturity date remains May 1, 2018.
The revolving credit component carries the same interest rate as
the current credit facility of LIBOR plus 3% per annum. The
term loan component when drawn will carry interest at either a rate
of LIBOR plus 6% per annum or an alternative base rate plus 5% per
annum with the potential for a rate reduction subsequent to January
31, 2015, if the Company achieves certain leverage ratios. The
credit facility continues to be secured by ValueVision Media's and
its subsidiaries' accounts receivable, inventory, real estate and
other assets.
ValueVision CFO Bill McGrath said, "The $25 million expansion of
our credit facility substantially improves our liquidity and better
positions us to support future growth. Through the first
nine-months of fiscal year 2013, our shipped unit volume increased
24% over the prior year. Improvements in our product mix,
associated reductions in our average selling price, and most
importantly, continued improvements in our customer experience have
enabled us to increase our rolling 12-month customer count by 13%
to 1.25 million as of November 2, 2013. Investing in our
operational infrastructure will further enhance our customer
experience and strengthen our foundation for long-term, sustainable
growth. The expansion of the PNC credit facility provides great
flexibility as we evaluate options for increasing our distribution
and fulfillment capacity."
About ValueVision Media
ValueVision Media, Inc. is a multichannel retailer that enables
customers to shop and interact via TV, phone, Internet and mobile
in the merchandise categories of Home & Consumer Electronics,
Beauty, Health & Fitness, Fashion & Accessories, and
Jewelry & Watches. ValueVision has transitioned its consumer
brand to ShopHQ from ShopNBC. ValueVision's television network
reaches over 86 million cable and satellite homes and is also
available nationwide via live streaming at www.shophq.com.
Please visit www.shophq.com/ir for more investor
information.
Forward-Looking Information
This release may contain certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Any statements contained herein that are not statements of
historical fact may be deemed forward-looking statements. These
statements are based on management's current expectations and
accordingly are subject to uncertainty and changes in
circumstances. Actual results may vary materially from the
expectations contained herein due to various important factors,
including (but not limited to): consumer preferences, spending and
debt levels; the general economic and credit environment; interest
rates; seasonal variations in consumer purchasing activities; the
ability to achieve the most effective product category mixes to
maximize sales and margin objectives; competitive pressures on
sales; pricing and gross sales margins; the level of cable and
satellite distribution for our programming and the associated fees;
our ability to establish and maintain acceptable commercial terms
with third-party vendors and other third parties with whom we have
contractual relationships, and to successfully manage key vendor
relationships; our ability to manage our operating expenses
successfully and our working capital levels; our ability to remain
compliant with our long-term credit facility covenants; our
ability to successfully transition our brand name; the market
demand for television station sales; our management and information
systems infrastructure; challenges to our data and information
security; changes in governmental or regulatory requirements;
litigation or governmental proceedings affecting our operations;
significant public events that are difficult to predict, or other
significant television-covering events causing an interruption of
television coverage or that directly compete with the viewership of
our programming; and our ability to obtain and retain key
executives and employees. More detailed information about those
factors is set forth in the Company's filings with the Securities
and Exchange Commission, including the Company's annual report on
Form 10-K, quarterly reports on Form 10-Q, and current reports on
Form 8-K. You are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date of this
announcement. The Company is under no obligation (and expressly
disclaims any such obligation) to update or alter its
forward-looking statements whether as a result of new information,
future events or otherwise.
Important Information
This release may be deemed to be solicitation material in
respect of the solicitation of proxies from shareholders in
connection with one or more meetings of the Company's
shareholders. The Company will file with the Securities
and Exchange Commission ("SEC") and provide to its stockholders a
proxy statement and a WHITE proxy card in connection with any such
shareholder meeting. The Company, its directors and certain of
its executive officers and employees may be deemed to be
participants in the solicitation of proxies from shareholders in
connection with any such shareholder meeting. Information
concerning the interests of these directors and executive officers
in connection with the matters to be voted on at any such meeting
will be included in the proxy statement filed by the Company with
the SEC in connection with any such meeting. In addition, the
Company files annual, quarterly and special reports, proxy and
information statements, and other information with the
SEC. Any proxy statement, any other relevant documents and any
other material filed with the SEC concerning the Company will be,
when filed, available free of charge at the SEC website
at http://www.sec.gov. SHAREHOLDERS ARE URGED TO READ
CAREFULLY ANY SUCH PROXY STATEMENT FILED BY THE COMPANY AND ANY
OTHER RELEVANT DOCUMENTS FILED WHEN THEY BECOME AVAILABLE BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION, INCLUDING INFORMATION WITH
RESPECT TO PARTICIPANTS.
Contacts Media: Dawn Zaremba ShopHQ dzaremba@shophq.com (952)
943-6043 O Investors: David Collins, Eric Lentini Catalyst Global
LLC vvtv@catalyst-ir.com (212) 924-9800 O (917) 734-0339 M
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