Daily News: April 25, 2012

HSN Completes New $600 Million Credit Facility With BofA, Others


Interactive multichannel retailer HSN, Inc. announced that it has entered into a new $600 million five-year credit facility, replacing a $150 million revolving credit facility that was set to expire in July 2013. The new credit facility, which includes a $350 million revolving credit facility and a $250 million delayed draw term loan, expires in April 2017.

According to the company’s 8-K filing, it entered into the credit facility with Bank of America as administrative agent and collateral agent, JPMorgan Chase Bank, Wells Fargo Bank and Barclays Bank as syndication agents, Branch Banking & Trust, Regions Bank and Union Bank, as documentation agents and Merrill Lynch, Pierce, Fenner & Smith, J.P. Morgan Securities, Wells Fargo Securities and Barclays Bank as joint lead arrangers and joint book managers.

Loans under the revolver and the term loan bear interest at a per annum rate equal to LIBOR plus 1.50% to 2.25%, based on HSNI’s leverage ratio (the beginning LIBOR margin will be 1.50%). The term loan must be drawn by December 31, 2012. Proceeds from the new credit facility are available for general corporate purposes, including working capital, capital expenditures, acquisitions, share repurchases and redemption of the company’s $240 million 11.25% Senior Notes, due August 2016 and callable August 1, 2012 at a price of 105.625%.

“The new credit facility strengthens our liquidity profile and provides us with significant additional financial flexibility at attractive rates,” said Judy Schmeling, EVP and CFO, HSN, Inc. “We appreciate the strong support from our bank group and their demonstrated confidence in HSNi.”

HSN, Inc. is a $3 billion interactive multichannel retailer with strong direct-to-consumer expertise among its two operating segments, HSN and Cornerstone.