United Online's FTD Subsidiary Refinances Senior Secured Credit Facilities
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WOODLAND HILLS, Calif.--(BUSINESS WIRE)-- United Online, Inc.
(Nasdaq: UNTD), a leading provider of consumer products and services over the Internet, today announced that its wholly-owned subsidiary, FTD Group, Inc.
("FTD"), has entered into a new credit agreement (the "Credit Agreement") with various lenders, Wells Fargo Securities, LLC
, as sole lead arranger and sole book runner, and Wells Fargo Bank, National Association
, as administrative agent for the lenders, to refinance its senior secured credit facilities. The Credit Agreement provides FTD
with a $315 million
senior secured credit facility consisting of (i) a $265 million
seven-year term loan facility (the "Term Facility") and (ii) a $50 million
five-year revolving credit facility (the "Revolving Credit Facility" and together with the Term Facility, the "Credit Facilities"), and certain other financial accommodations including letters of credit.
The interest rates on both the Term Facility and the Revolving Credit Facility are either a base rate plus 2.5% per annum, or LIBOR plus 3.5% per annum (with a LIBOR floor of 1.25% in the case of the Term Facility). No loans were borrowed under the Revolving Credit Facility as of the closing of the Credit Facilities. The annualized reduction in cash interest expense resulting from the refinancing will be approximately $4.6 million, based on current benchmark rates.
"The new Credit Facilities significantly reduce FTD's overall cost of debt and extend the maturity of the Term Facility to 2018 and the Revolving Credit Facility to 2016," said Mark R. Goldston, Chairman, President and Chief Executive Officer of United Online. "In addition, the new Credit Agreement increases our financial flexibility in a number of ways, including lower mandatory payments and provisions for up to an additional $100 million in financing, subject to obtaining commitments and satisfaction of certain conditions."
About United Online®:
United Online, Inc. (Nasdaq: UNTD) is a leading provider of consumer products and services over the Internet, where the company's brands have attracted a large online audience that includes more than 60 million registered consumer accounts. The company's floral and related offerings include products and services for consumers and retail florists, as well as for other retail locations offering floral products and services, in the United States, Canada, the United Kingdom, and the Republic of Ireland. The floral business utilizes the highly recognized FTD (www.ftd.com) and Interflora (www.interflora.co.uk) brands, both supported by the Mercury Man logo that is displayed in more than 40,000 retail floral shops worldwide. The company's Content & Media services include online nostalgia services in the U.S. and Canada (www.memorylane.com) and a number of European countries as well as online loyalty marketing services (www.mypoints.com). The company's Communications services include value-priced Internet access provided by NetZero (www.netzero.com) and Juno (www.juno.com).
Headquartered in Woodland Hills, CA, United Online operates through a global network of locations in the U.S., the U.K., Germany, and India. More information about United Online is available on the company's website located at www.unitedonline.com.
United Online, Inc.
Source: United Online, Inc.
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