SAVANNAH, Ga.--(BUSINESS WIRE)--
Citi Trends, Inc. (NASDAQ: CTRN) today announced that it has secured a
new, five-year, $50 million credit facility through Bank of America to
replace its prior $20 million credit facility.
"We are pleased to announce the successful completion of this credit
facility which expands our borrowing capacity and extends the maturity,"
said David Alexander, the Company's President and Chief Executive
Officer. "Based on our existing strong cash level and current
projections of future cash flow, we do not expect to borrow under the
facility in the foreseeable future. Nevertheless, we believe that this
new credit facility provides us with substantially greater long-term
financial flexibility."
The new facility includes a $25 million uncommitted "accordion" feature
that under certain circumstances could allow the Company to increase the
size of the facility to $75 million. Borrowings, if any, under the
facility will bear interest (a) for LIBOR Rate Loans, at LIBOR plus
1.5%, or (b) for Base Rate Loans, at a rate equal to the highest of (i)
the prime rate plus 0.5%, (ii) the Federal Funds Rate plus 1.0%, or
(iii) LIBOR plus 1.5%. The facility is secured by the Company's
inventory, accounts receivable and related assets, but not its real
estate, fixtures and equipment. The facility contains one financial
covenant, a fixed charge coverage ratio, which is tested only in certain
circumstances.
About Citi Trends
Citi Trends, Inc. is a value-priced retailer of urban fashion apparel
and accessories for the entire family. The Company operates 507 stores
located in 28 states. Citi Trends' website address is www.cititrends.com.
CTRN-E
Forward-Looking Statements
All statements other than historical facts contained in this news
release, including statements regarding our future financial results and
position, business policy and plans and objectives of management for
future operations, are forward-looking statements that are subject to
material risks and uncertainties. The words "believe," "may," "could,"
"plans," "estimate," "continue," "anticipate," "intend," "expect" and
similar expressions, as they relate to Citi Trends, are intended to
identify forward-looking statements. Investors are cautioned that
any such forward-looking statements are not guarantees of future
performance or results and are inherently subject to risks and
uncertainties, some of which cannot be predicted or quantified. Actual
results or developments may differ materially from those included in the
forward-looking statements, as a result of various factors which are
discussed in Citi Trends, Inc. filings with the Securities and Exchange
Commission. Forward-looking statements contained herein speak
only as of the date of this press release. Except as required by
applicable law, including the securities laws of the United States and
the rules and regulations of the Securities and Exchange Commission,
Citi Trends does not undertake to publicly update any forward-looking
statements in this news release or with respect to matters described
herein, whether as a result of any new information, future events or
otherwise.
Citi Trends, Inc.
Bruce Smith, 912-443-2075
Chief
Financial Officer
or
David Alexander, 912-443-3924
President
and Chief Executive Officer
Source: Citi Trends, Inc.
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