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Closing on Friedman's, Inc. $135 Million Amended and Restated
Credit Facility Continues Beyond August 31st Deadlines
SAVANNAH, Ga., Sept. 1 /PRNewswire-FirstCall/ -- Friedman's Inc.
(OTC:FRDM.PK), the Value Leader in fine jewelry retailing, today reported that
the Company and its existing lenders are continuing to meet in Pasadena,
California today to work towards completion of an Amended and Restated Credit
Facility which, if closed, would provide for total commitments of $135 million,
comprised of a $75 million senior revolving loan and a $60 million junior term
loan. Under the terms of the commitment agreements for the proposed
restructuring, and a related forbearance agreement with the Company's existing
lenders, the negotiation and execution of definitive documentation and the
satisfaction of closing conditions were to have been completed yesterday.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020215/FRIEDMANLOGO )
Closing meetings on the restructured credit facility commenced in Pasadena on
August 30, 2004 and are continuing day-to-day. The Company stated that
although Friedman's remains in active discussions with Farallon and its other
senior lenders, there can be no assurance that the proposed transactions will
be consummated or that the Company's lenders would continue to forbear from
exercising remedies in connection with the Company's existing credit
facilities.
As previously announced on August 5, 2004, the Company had entered into a
commitment letter with Farallon Capital Management, L.L.C. ("Farallon"), an
affiliate of one of the lenders under the Company's existing secured credit
facility, which could provide as much as $25 to $30 million of additional
availability to the Company under its credit facility. As previously announced
on August 20, 2004, the Company's other existing lenders agreed to the terms of
the restructuring of the Company's existing secured credit facility
contemplated by the Farallon commitment letter and also entered into a
forbearance agreement with the Company under its existing amended and restated
credit agreement. The forbearance agreement provided that the lenders would
forbear from exercising their remedies with respect to any existing default
until the earlier of August 31, 2004 or the occurrence of a new default. Under
both agreements, Friedman's was required to complete the proposed restructuring
transaction by August 31, 2004. Assuming that the closing of the pending
financing transaction is consummated, Friedman's believes that the revised
terms and structure of the facility, together with vendor support, should
provide adequate liquidity to move forward, assuming that the required
agreements with the Company's lenders and vendors can be reached promptly to
provide adequate time to obtain the inventory required for Friedman's holiday
season sales plan.
About Friedman's
Founded in 1920, Friedman's Inc. is a leading specialty retailer based in
Savannah, Georgia. The Company is the leading operator of fine jewelry stores
located in power strip centers and regional malls. For more information, go
to: http://www.friedmans.com/ .
This release has been prepared by Friedman's. Farallon provided information
about its firm at http://www.faralloncapital.com/ .
Some of the statements included in this press release, particularly those
anticipating future financial performance, business prospects, growth and
operating strategies, the obtaining of additional financing and similar
matters, are forward-looking statements that involve a number of risks and
uncertainties. These forward-looking statements are not guarantees of future
performance and a variety of factors could cause the Company's actual results
to differ materially from the anticipated or expected results expressed in
these forward-looking statements. The Company undertakes no obligation to
update or revise any such forward-looking statements. The forward-looking
statements, the Company's liquidity, capital resources, ability to obtain
additional financing and results of operations are subject to a number of risks
and uncertainties, including but not limited to, the following: adverse
effects from the Company's delay in paying suppliers and from suppliers not
delivering merchandise; the ability of the Company to comply with the terms of
its credit facility; the ability of the Company to satisfy all conditions
precedent, including due diligence requirements, to any proposed additional
financing; the willingness of the Company's vendors to participate in a vendor
support program; potential adverse developments with respect to the Company's
liquidity and/or results of operations; competitive pressures from other
retailers; trends in the economy as a whole which may affect consumer
confidence and consumer demand for the types of goods sold by the Company; the
ability of the Company to attract, retain and compensate key executives and
associates; the ability of the Company to attract and retain customers;
potential adverse publicity; the ability of the Company to achieve the cost
savings and operational benefits projected from its planned store closings; the
final results of the audit including the review of the calculation of our
allowance for doubtful accounts and any recordation of impairment charges; the
results of the SEC and Justice Department investigations; the results of
various litigation; the effect of the restatement on our credit facilities,
including funding availability thereunder and our relationship with our
lenders; the effect of the restatement on our future earnings, including any
adjustments to previously announced earnings forecasts; and other risk factors
identified from time to time in our SEC reports, including, but not limited to,
the report on Form 10-K for the year ended September 28, 2002.
http://www.newscom.com/cgi-bin/prnh/20020215/FRIEDMANLOGO
http://photoarchive.ap.org/
DATASOURCE: Friedman's Inc.
CONTACT: Jane D'Arcy of Trion Communications, +1-401-453-3100, ext. 104,
or
Web site: http://www.friedmans.com/
http://www.faralloncapital.com/