CSS Industries, Inc. (NYSE:CSS) announced today a new five-year revolving credit facility with Wells Fargo Bank, National Association (“Wells Fargo”) and Citizens Bank of Pennsylvania (“Citizens Bank”). Borrowing availability under the new revolving credit facility fluctuates from a low of $50,000,000 during times when the Company historically has had little or no debt outstanding to a maximum level of $150,000,000 during the Company’s historical seasonal peak borrowing periods. This new structure is expected to provide ample borrowing capacity while reducing the Company’s costs during historically low borrowing periods. The new revolving credit facility, which expires on March 17, 2016, was structured and arranged by Wells Fargo, and it replaces the Company’s $110,000,000 revolving credit facility, which had been due to expire in November 2011, and its accounts receivable securitization facility, which had been due to expire in July 2011.
“We are very pleased that we have been able to secure this revolving credit facility with Wells Fargo Bank and Citizens Bank,” commented Vincent A. Paccapaniccia, CSS’ Vice President – Finance and Chief Financial Officer. “We believe that this new revolving credit facility provides favorable terms that will provide sufficient borrowing capacity to fund CSS’ current seasonal borrowing needs as well as to provide the platform to underwrite our future growth. Wells Fargo and Citizens Bank have been long-time partners with CSS, and we look forward to continuing and building these relationships.”
CSS is a consumer products company primarily engaged in the design, manufacture, procurement, distribution and sale of seasonal and all occasion social expression products, principally to mass market retailers. These seasonal and all occasion products include gift wrap, gift bags, gift boxes, gift card holders, boxed greeting cards, gift tags, decorative tissue paper, decorations, classroom exchange Valentines, decorative ribbons and bows, floral accessories, Halloween masks, costumes, make-up and novelties, Easter egg dyes and novelties, craft and educational products, memory books, stationery, journals, notecards, infant and wedding photo albums, scrapbooks, and other gift items that commemorate life’s celebrations.