The Company also announced that it has engaged Moelis & Co. to lead the refinancing efforts of the Senior Secured Term Loan.Credit Facility Terms Wells Fargo Capital Finance, part of Wells Fargo & Company (NYSE: WFC), serves as Administrative Agent and Collateral Agent and Bank of America, N.A. serves as Syndication Agent, together providing all of the commitments for the new facility. Wells Fargo Capital Finance, LLC and Merrill Lynch, Pierce Fenner & Smith Incorporated acted as Joint Lead Arrangers and Joint Bookrunners. The new facility matures on the earlier of October 17, 2017, and the date which is 90 days prior to the final maturity date of any portion of the Company’s Senior Secured Term Loan. The new facility also contains an uncommitted accordion provision that, subject to certain conditions, allows the Company to expand the facility by up to $50 million. As of the closing, the Company had approximately $46.0 million of cash borrowings under the new facility, approximately $10.8 million of letters of credit backed by the facility and approximately $58 million in available borrowing capacity. The interest rate on the revolving credit facility is equal to LIBOR plus an applicable margin ranging from 1.50% to 2.00% based on availability under the line, which compares to a range of LIBOR plus 2.50% to 3.25% on the Company’s prior facility. Amounts available under the credit facility are subject to borrowing base formulas as specified in the credit agreement. For additional information on the credit facility and the specific terms of the agreements, please see the Company’s report on Form 8-K to be filed with the SEC. About Orchard Orchard Supply Hardware Stores Corporation is a neighborhood hardware and garden store focused on paint, repair and the backyard. Founded as a purchasing cooperative in San Jose in 1931, today the stores average 44,000 square feet of enclosed retail space and 8,000 square feet of exterior nursery and garden space, carrying a broad assortment of merchandise for repair, maintenance and improvement needs for the home and backyard. As of October 17, 2012, the Company had 89 stores in California.
About Wells Fargo Capital FinanceWells Fargo Capital Finance is the trade name for certain asset-based lending, accounts receivable and purchase order finance services of Wells Fargo & Company and its subsidiaries, and provides traditional asset-based lending, specialized senior and junior secured financing, accounts receivable financing, purchase order financing and channel finance to companies across the United States and internationally. Dedicated teams within Wells Fargo Capital Finance provide financing solutions for companies in specific industries such as retail, software publishing and high-technology, commercial finance, staffing, government contracting and others. For more information, visit wellsfargocapitalfinance.com. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release (including information incorporated or deemed incorporated by reference herein) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations, estimates, forecasts, and projections as well as the current beliefs and assumptions of the Company’s management. Words such as “guidance”, “outlook”, “believes”, “expects”, “appears”, “may”, “will”, “should”, “intend”, “target”, “projects”, “estimates”, “plans”, “forecast”, “is likely to”, “anticipates”, or the negative thereof or comparable terminology, are intended to identify such forward looking statements. Any statement that is not a historical fact and other estimates, projections, future trends and the outcome of events that have not yet occurred referenced in this press release, is a forward-looking statement. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore actual results may differ materially and adversely from those expressed in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, factors discussed under the section entitled “Risk Factors” in the Company’s reports filed with the Securities and Exchange Commission. Many of such factors relate to events and circumstances that are beyond the Company’s control. You should not place undue reliance on forward-looking statements. The Company does not assume any obligation to update the information contained in this press release.