iParty Corp. Renews Three Year Credit Agreement with Wells Fargo
July 06 2009 - 9:00AM
Business Wire
iParty Corp. (NYSE Amex: IPT - news), a party goods retailer,
has entered into a Second Amended and Restated Credit Agreement
that continues its revolving line of credit with Wells Fargo at
$12,500,000 and extends the term of the line for three years to
July 2, 2012.
The amount of credit that is available from time to time under
the Agreement is determined as a percentage of the value of
eligible inventory and eligible credit card receivables, as reduced
by certain reserve amounts. In addition, the new agreement includes
an option whereby the company may increase its line of credit up to
a maximum level of $15,000,000. Borrowings under the new agreement
will generally accrue interest at a margin ranging from 3.00% to
3.50% over, at the Borrowers� election, either the London Interbank
Offered Rate (�LIBOR�) or a base rate determined by Wells Fargo
from time to time.�The facility also provides for letters of credit
and includes an unused line fee on the unused portion of the credit
line. Subject to conditions set forth in the new agreement which
the company expects to meet, the new agreement continues to allow
the revolving line of credit to be used to repay the $2.5 million
loan from Highbridge International LLC when it becomes due on
September 15, 2009. The obligations of the Borrowers under the
Agreement and the other loan documents are secured by a lien on
substantially all of the personal property of the Borrowers.
Sal Perisano, Chairman and Chief Executive Officer of iParty
Corp., commented, �We are very pleased to continue our banking
relationship with Wells Fargo for another three years. Wells Fargo
has proven to be a solid and dependable business partner for us.
Over the years we have used our facility with Wells Fargo to grow
our business as well as to fund day to day operations. This renewal
will allow us to continue to do so.�
About iParty Corp.
Headquartered in Dedham, Massachusetts, iParty Corp. is a party
goods retailer that operates 50 iParty retail stores and licenses
the operation of an Internet site for party goods and party
planning at www.iparty.com. iParty�s aim is to make throwing a
successful event both stress-free and fun. With over 20,000 party
supplies and costumes and an online party magazine and
party-related content, iParty offers consumers a sophisticated, yet
fun and easy-to-use, resource with an extensive assortment of
products to customize any party, including birthday bashes, Easter
get-togethers, graduation parties, summer barbecues, and, of
course, Halloween. iParty aims to offer reliable, time-tested
knowledge of party-perfect trends, and superior customer service to
ensure convenient and comprehensive merchandise selections for
every occasion. Please visit our site at www.iparty.com.
Safe harbor statement under the Private Securities Litigation
Reform Act of 1995
Certain statements in this Press Release constitute
�forward-looking statements� within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The words
�anticipate�, �believe�, �estimate�, �expect�, �plan�, �intend� and
other similar expressions are intended to identify these
forward-looking statements, but are not the exclusive means of
identifying them. Forward-looking statements included in this Press
Release or hereafter included in other publicly available documents
filed with the Securities and Exchange Commission (�SEC�), reports
to our stockholders and other publicly available statements issued
or released by us involve known and unknown risks, uncertainties,
and other factors which could cause our actual results, performance
(financial or operating) or achievements to differ from the future
results, performance (financial or operating) or achievements
expressed or implied by such forward looking statements. Such
future results are based upon our best estimates based upon current
conditions and the most recent results of operations. Various
risks, uncertainties and contingencies could cause our actual
results, performance or achievements to differ materially from
those expressed in, or implied by, the forward-looking statements
contained in this Press Release. These include, but are not limited
to, those described under Item 1A, �Risk Factors� of our most
recently filed Annual Report on Form 10-K for the year ended
December 27, 2008 and our other periodic reports subsequently filed
with the SEC. Our forward-looking statements speak only as of the
date of this Press Release, and we do not intend to update these
statements to reflect events or circumstances that occur after this
date.
Iparty (AMEX:IPT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Iparty (AMEX:IPT)
Historical Stock Chart
From Jul 2023 to Jul 2024