Enesco Group, Inc. Announces Amendment to U.S. Credit Facility; EBITDA Covenant Reset Through December 31, 2005
August 31 2005 - 8:27PM
Business Wire
Enesco Group, Inc. (NYSE:ENC), a leader in the giftware, and home
and garden decor industries, today announced a ninth amendment to
its current U.S. credit facility, effective as of August 31, 2005.
The ninth amendment reset the Company's minimum EBITDA and capital
expenditure covenants through the facility termination date,
December 31, 2005, based on the Company's reforecast and long-term
partnership with Bank of America, as successor to Fleet National
Bank, and LaSalle Bank. The Company is aggressively pursuing a
replacement senior credit facility. The ninth amendment also added
the accounts receivable and inventories of Enesco Limited, Enesco
Holdings Limited and Bilston & Battersea Enamels Limited, and
the accounts receivable of Enesco International (H.K.) Limited as
eligible collateral to the borrowing base under the current credit
facility, and reduced the advance rate on inventory from 50% to
33%. The ninth amendment also increased the current credit facility
size to $75.0 million, rather than a variable size of $50.0 million
to $70.0 million. Further information can be found in Enesco's Form
8-K, posted September 1, 2005, with the Securities and Exchange
Commission on www.sec.gov, or visit www.enesco.com under Investor
Relations. About Enesco Group, Inc. Enesco Group, Inc. is a world
leader in the giftware, and home and garden decor industries.
Serving more than 30,000 customers globally, Enesco distributes
products to a wide variety of specialty card and gift retailers,
home decor boutiques as well as mass-market chains and direct mail
retailers. Internationally, Enesco serves markets operating in
Europe, Canada, Australia, Mexico, and Asia. With subsidiaries
located in Europe and Canada, and a business unit in Hong Kong,
Enesco's international distribution network is a leader in the
industry. The Company's product lines include some of the world's
most recognizable brands, including Heartwood Creek, Walt Disney
Company, Walt Disney Classics Collection, Pooh & Friends, Jim
Shore, Foundations, Circle of Love, Nickelodeon, Bratz, Halcyon
Days, Lilliput Lane and Border Fine Arts, among others. Further
information is available on the Company's web site at
www.enesco.com. This press release contains forward-looking
statements, which reflect management's current assumptions and
beliefs and are based on information currently available to
management. The Company has tried to identify such forward-looking
statements by use of such words as "expects," "intends,"
"anticipates," "could," "estimates," "plans," and "believes," and
similar expressions, but these words are not the exclusive means of
identifying such statements. Such statements are subject to various
risks, uncertainties and other factors, which could cause actual
results to vary materially from those anticipated, estimated,
expected or projected. Important factors that may cause actual
future events or results to differ materially and adversely from
those described in the forward-looking statements include, but are
not limited to: the Company's success in developing new products
and consumer reaction to the Company's new products; the Company's
ability to secure, maintain and renew popular licenses,
particularly our Cherished Teddies, Heartwood Creek and Disney
licenses; the Company's ability to grow revenues in mass and niche
market channels; the Company's ability to comply with covenants
contained in its credit facility; the Company's ability to obtain a
new global senior credit facility; the Company's ability to
effectively transition to the legacy information system; changes in
general economic conditions, as well as specific market conditions;
fluctuations in demand for our products; manufacturing lead times;
the timing of orders and shipments and our ability to predict
customer demands; inventory levels and purchase commitments
exceeding requirements based upon incorrect forecasts; collection
of accounts receivable; changes in the regulations and procedures
affecting the importation of goods into the United States; changes
in foreign exchange rates; price and product competition in the
giftware industry; variations in sales channels, product costs or
mix of products sold; and, possible future terrorist attacks,
epidemics, or acts of war. In addition, the Company operates in a
continually changing business environment and does not intend to
update or revise the forward-looking statements contained herein,
which speak only as of the date hereof. Additional information
regarding forward-looking statement risk factors is contained in
the Company's reports and filings with the Securities and Exchange
Commission. In light of these risks and uncertainties, the
forward-looking statements contained herein may not occur and
actual results could differ materially from those set forth herein.
Accordingly, you should not rely on these forward-looking
statements as a prediction of actual future results.
Enesco (NYSE:ENC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Enesco (NYSE:ENC)
Historical Stock Chart
From Jul 2023 to Jul 2024