MAIN NEWS HEADLINES
April 2 – April 9, 2009 Edition
Loan Extension Gives
Borders Breathing Room
ANN ARBOR, MI/Authorlink News/04/01/09-Pershing Square Capital Management has agreed to extend for one year its $42.5 million loan agreement with Borders Group, Inc. The loan will be extended at an increase rate of 9.8%, substantially below market for comparable financing.
At the same time, Borders Group is resetting the strike price on Pershing Squares 14.7 million warrants to $0.65 per share, and the company will allow its option to put its U.K. based Paperchase gifts and stationery business to Pershing Square to expire. (Editors note: The strike price is the stated price per share for which an underlying security may be purchased or sold by the option holder when an option contract is exercised.)
We are pleased to have the continued support of our largest shareholder as we focus on getting our companys financial house in order, said Borders Group Chief Executive Officer Ron Marshall. The extension of the loan gives us some necessary breathing room, which is important in the current economic environment. We are also pleased to retain Paperchase, which is a successful and important business throughout the U.K. and other markets as well as in our Borders superstores throughout the U.S.
Headquartered in Ann Arbor, Mich., Borders Group, Inc. (NYSE: BGP) is a leading retailer of books, music and movies with approximately 25,000 employees. Through its subsidiaries, the company operates more than 1,000 stores worldwide primarily under the Borders® and Waldenbooks® brand names. For online shopping, visit Borders.com. For more information about the company, visit www.borders.com/aboutus.