United Online announced that its wholly-owned subsidiary, FTD Companies (FTD) entered into a new credit agreement with various lenders. Bank of America Merrill Lynch and Wells Fargo Securities served as joint lead arrangers and book managers, and Bank of America served as administrative agent for the lenders.

The five-year, $350 million revolving credit facility refinanced the existing senior secured credit facilities of FTD. The credit agreement provides certain other financial accommodations including letters of credit. At closing earlier today, FTD drew $220 million of the new $350 million revolving credit facility and used approximately $19 million of its existing cash balance to repay its previously outstanding credit facilities in full and pay fees and expenses related to the credit agreement.

“The refinancing of FTD’s credit facilities is an important step as we progress toward the planned spin-off of FTD from United Online. This new credit agreement reduces FTD’s cost of debt by approximately $7 million annually based on current LIBOR rates and provides FTD with substantial capital and financial flexibility going forward,” said Mark R. Goldston, chairman, president and chief executive officer of United Online.

“One of the key benefits of the new Credit Agreement is that, based on today’s LIBOR rates, we believe this significant annual interest savings will more than offset the public company costs FTD will incur once the tax-free spin-off is complete,” added Robert S. Apatoff, president of FTD Companies, Inc.

United Online through its operating subsidiaries is a provider of consumer products and services over the Internet.