Key Developments For Bon-Ton Stores Inc
Bon-Ton Stores Inc (BONT.O) (Nasdaq)
The Bon-Ton Stores, Inc. Raises FY 2009 Earnings Outlook; Raises FY 2009 Comparable Store Sales Outlook
The Bon-Ton Stores, Inc. raised its fiscal 2009 outlook and expects EBITDA to a range of $180-$200 million, loss per diluted share in the range of $2.30-$1.20 and comparable store sales decrease in the range of 5.0%-6.5%.
The Bon-Ton Stores, Inc. Announces $75 Million Second Lien Term Loan Credit Facility
The Bon-Ton Stores, Inc. announced that it has received commitments in excess of the commitment amount sought from lenders for a $675 million 3.5-year senior secured asset-based credit facility (the New Credit Facility) that will replace the Company's existing $800 million asset-based revolving credit facility (the Existing Credit Facility) that is scheduled to mature in March 2011. Bank of America, N.A. will serve as Administrative Agent on the New Credit Facility. Bank of America Merrill Lynch; GE Capital Markets, Inc.; and Wells Fargo Securities, LLC are acting as Joint Lead Arrangers and Joint Book Runners on the New Credit Facility. The Company expects to close on the New Credit Facility in early December of this year. The Company also announced that it has closed on a $75 million Second Lien Term Loan Credit Facility, which will mature on November 18, 2013. The agents are Sankaty Advisors, LLC; GB Merchant Partners, LLC; and GA Capital, LLC. Bank of America Merrill Lynch acted as Lead Arranger for the facility. Proceeds from the transaction will be used to increase liquidity by paying down a portion of the outstanding borrowings under the Existing Credit Facility and related fees and expenses. The only financial covenant in the Second Lien Term Loan Credit Facility is a minimum borrowing availability of $75 million under the Existing Credit Facility (and the New Credit Facility when it becomes effective).
The Bon-Ton Stores, Inc. Sees FY 2009 Outlook At High End Of Prior Range
The Bon-Ton Stores, Inc. updated its fiscal 2009 outlook and expects results to be at the high end of the previously stated outlook range. Outlook provided on August 20, 2009 was for fiscal 2009 EBITDA in the range of $150-$170 million and for loss per diluted share in the range of $3.70-$2.50.
The Bon-Ton Stores, Inc. Raises FY 2009 Guidance; Raises Low End of Prior FY 2009 Comparable Store Sales Guidance
The Bon-Ton Stores, Inc. raised its fiscal 2009 guidance and expects EBITDA in the range of $150 million to $170 million and loss per diluted share in the range of $3.70 to $2.50. The Company also expects comparable store sales decrease in the range of 7.0% to 9.0%. According to Reuters Estimates, analysts are expecting the Company to report EBITDA of $158 million and EPS of $(3.20) for fiscal 2009.
The Bon-Ton Stores, Inc. Announces Northwood, Ohio Store Closing
The Bon-Ton Stores, Inc. announced that it will close its 167,900 square foot Elder-Beerman Woodville Mall store in Northwood, Ohio. The leasehold interest in the Northwood location was acquired by Bon-Ton in 2003 as part of the Elder-Beerman acquisition. The closing, which is scheduled for the middle of September 2009, will impact approximately 60 associates. The closing costs for the location will not be material. The affected associates at the Northwood location may consider available opportunities at the Elder-Beerman Westgate Village store or receive career transition benefits, including severance according to established practices and state employment service support.
