Destination Maternity Corporation Prepays $10 Million of Term Loan Debt
PHILADELPHIA, Dec. 22 /PRNewswire-FirstCall/ -- Destination Maternity
Corporation (Nasdaq: DEST) announced today that it has prepaid $10 million of
its senior secured Term Loan due March 2013, reflecting the Company's priority
to continue to deleverage its balance sheet. On November 18, 2008, the Company
had announced that it intended to prepay $10 million of its Term Loan prior to
the end of the first quarter of fiscal 2009 (December 31, 2008). The $10
million of Term Loan prepayments the Company has made since that announcement
include a $622,000 prepayment required under the annual excess cash flow
provision of the Term Loan. Pursuant to the provisions of the Term Loan, the
prepayments were made without any prepayment premium or penalty. The Company's
indebtedness under the Term Loan is now $65.7 million.
Ed Krell, Chief Executive Officer of Destination Maternity Corporation,
noted, "We are very pleased to complete our $10 million Term Loan prepayment,
consistent with our previously announced intention per our November 18, 2008
press release. We believe this action indicates our continued commitment to
increase shareholder value and deleverage our balance sheet, and reflects our
continued confidence in our generation of free cash flow despite a challenging
overall economic environment."
Destination Maternity Corporation is the world's largest designer and
retailer of maternity apparel, using its custom TrendTrack(TM) merchandise
analysis and planning system as well as its quick response replenishment
process to "give the customer what she wants, when she wants it." As of
November 30, 2008, Destination Maternity Corporation operates 1,037 maternity
locations, including 754 stores, predominantly under the tradenames Motherhood
Maternity(R), A Pea in the Pod(R), Mimi Maternity(R), and Destination
Maternity(R), and sells on the web through its DestinationMaternity.com and
brand-specific websites. In addition, Destination Maternity Corporation
distributes its Oh Baby by Motherhood(TM) collection through a licensed
arrangement at Kohl's(R) stores throughout the United States and on Kohls.com.
The Company cautions that any forward-looking statements (as such term is
defined in the Private Securities Litigation Reform Act of 1995) contained in
this press release or made from time to time by management of the Company,
including those regarding expected results of operations, liquidity, financial
condition and free cash flow and various business initiatives, involve risks
and uncertainties, and are subject to change based on various important
factors. The following factors, among others, in some cases have affected and
in the future could affect the Company's financial performance and actual
results and could cause actual results to differ materially from those
expressed or implied in any such forward-looking statements: our ability to
successfully manage our various business initiatives, our ability to
successfully manage and retain our leased department and licensed
relationships and marketing partnerships, future sales trends in our existing
store base, weather, changes in consumer spending patterns, raw material price
increases, consumer preferences and overall economic conditions, the impact of
competition and pricing, availability of suitable store locations, continued
availability of capital and financing, ability to hire and develop senior
management and sales associates, ability to develop and source merchandise,
ability to receive production from foreign sources on a timely basis,
potential stock repurchases, potential debt prepayments, changes in market
interest rates, war or acts of terrorism, and other factors set forth in the
Company's periodic filings with the Securities and Exchange Commission, or in
materials incorporated therein by reference.
