Venator Group Completes Amendment to its Credit Agreement
NEW YORK, March 19 /PRNewswire/ - Venator Group, Inc. (NYSE: Z - news), the largest athletic footwear and apparel retailer in the world, today announced that it has completed the amendment of its Credit Agreement (the Credit Facility) with its Bank Group that provides the Company with a $400 million revolving credit facility.
''We appreciate the support we have received from our Bank Group, and the confidence in Venator Group and in our long term prospects reflected in this amendment,'' stated Roger Farah, Venator Group's Chairman and Chief Executive Officer. ''The new credit facility provides the Company with adequate working capital to execute our 1999 business plan and allows us to focus our attention fully on enhancing our position as the leading retailer of athletic footwear and apparel.''
The Credit Facility provides for, among other items, modifications of certain financial covenants, restrictions on certain payments, such as dividends or the repurchase of the Company's securities, including common stock, capital expenditures in line with the Company's current plan and the collateralization of certain assets of the Company, other than inventory. Based on the Company's current projection of its credit needs, the amount of the Credit Facility is reduced to $300 million on February 15, 2000. The Credit Facility expires in April 2002.
Venator Group is a diversified global retailer that operates more than 6,000 retail stores in 14 countries in North America, Europe, Australia and Asia. Through its athletic group of specialty retail stores, including Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports and Colorado, as well as its direct marketer Eastbay, the Company is the leading provider of athletic footwear and apparel. Venator Group's Internet web sites include eastbay,com, footlocker.com, kidsfootlocker.com, and champssports.com. Other specialty retail chains include the Northern Group of apparel stores, afterthoughts jewelry stores and San Francisco Music Box.
Disclosure Regarding Forward-Looking Statements
This press release contains forward-looking statements that reflect management's current views of future events and financial performance. These forward-looking statements are based on many assumptions and factors including the effects of currency fluctuations, consumer preferences and economic conditions worldwide. Any changes in such assumptions or factors could produce significantly different results.
SOURCE: Venator Group, Inc.
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