Key Developments For Select Comfort Corp
Select Comfort Corp (SCSS.O) (Nasdaq)
Select Comfort Corp. Comfort Enters Into New Credit Agreement Through June 2011; Closes $10 Million Investment From Sterling Partners
Select Comfort Corp. announced it has entered into an amended and restated credit agreement with its lenders. The credit facility, which extends through June 30, 2011, provides an initial commitment of up to $55 million. The Company also stated it has received a $10 million investment from Sterling Partners pursuant to the terms of the previously announced Securities Purchase Agreement. Sterling Partners invested $10 million in exchange for 2.5 million shares of the Company's common stock priced at $4.00 per share and warrants to purchase two million shares of the Company's common stock at an exercise price of $0.01 per share.
Select Comfort Corp. Issues FY 2009 EPS Guidance Above Analysts' Estimates
Select Comfort Corp. announced that for fiscal 2009, it expects earnings (EPS) of between $0.02 and $0.08 per diluted share. The Company also anticipates recent sales trends to continue into early fiscal 2010, with same-store growth largely offset by reductions in retail stores and the discontinuation of retail-partner distribution. According to Reuters Estimates, analysts were expecting the Company to report breakeven EPS for fiscal 2009.
Select Comfort Corp. Announces Filing of Shelf Registration Statement
Select Comfort Corp. announced that it has filed a shelf registration statement with the Securities and Exchange Commission (SEC), which if and when it`s declared effective by the SEC, permits the Company to issue up to $50 million worth of registered equity securities. At such time the shelf registration statement is declared effective, the Company will have the ability to issue common stock, preferred stock, warrants to purchase common stock, subscription rights, or any combination of such securities. The Company can issue these securities at its discretion in one or more separate transactions with size, price and terms to be determined at the time of issuance.
Select Comfort Corp. In Deal For $10 Million Equity Investment-Reuters
Reuters reported that Select Comfort Corp. said it agreed with private equity firm Sterling Partners for an investment of $10 million through June 2010. Under the terms, Sterling Partners has the right to purchase 2.5 million shares at $4.00 apiece, and will receive warrants to buy 2 million shares at 1 cent each. Select Comfort said it can require the investment upon securing an acceptable extended credit agreement from its lenders.
Select Comfort Corp. Terminates Securities Purchase Agreement; Negotiates New $10 Million Sterling Partners Investment
Select Comfort Corp. announced that it has terminated the Securities Purchase Agreement entered into with Sterling Partners on May 22, 2009, and entered into a new Securities Purchase Agreement. As part of the termination agreement, both companies mutually released claims relating to the original agreement. Under terms of the new Securities Purchase Agreement, Sterling Partners has the right through June 2010 to invest $10.0 million in exchange for 2.5 million shares of the Company's common stock priced at $4.00 per share and warrants to purchase two million shares of the Company's common stock at an exercise price of $0.01 per share. Select Comfort can require the investment upon securing an acceptable extended credit agreement from its lenders. With the close of the investment and exercise of the warrants, Sterling Partners will own approximately 8.9% of the Company's common stock. The termination date of the current credit agreement is June 9, 2010, with the most recent waiver the Company is operating under in effect until October 13, 2009.
