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Thursday, April 1, 2010

Books Borders Sticks Around

Posted by Paul Constant on Thu, Apr 1, 2010 at 2:20 PM

Today was an important day in Borders history: It's the day that a $42.5 million loan came due. Looks like they have the last laugh:

ANN ARBOR, Mich., March 31 /PRNewswire-FirstCall/ — Borders Group, Inc. (NYSE: BGP) today announced that it has entered into an amended and restated revolving credit agreement. The new, $700 million senior secured asset-based credit facility matures in March 2014 and replaces the company's existing revolving credit agreement, which would have matured in July 2011...The company also closed on a $90 million term loan credit facility, which will mature in March 2014 with the exception of $10 million of that facility, which Borders will amortize over four months beginning in September and concluding in December of this year...Separately, Borders Group has met its obligation to Pershing Square Capital Management, L.P. for payment of the $42.5 million senior secured term loan due April 1.

The chain bookseller also announced some solid profits for the last quarter. If you had asked me at the beginning of this recession, I would have bet good money on the company going bankrupt before the end of the recession. It looks like I would have lost that bet.

Comments (3) RSS

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The problem with a lot of predictions on "new media" vs. "old media" made during the past two years is that it's really hard to separate out the recession from real seismic shifts. You know who else is doing well these days? Newspapers.

Posted by Fnarf