Fairway Group Holdings Corp. Amends Existing Senior Credit Agreement
Company Expects to Reduce Annualized Cash Interest Payments by $4.8 Million
NEW YORK, May 6, 2013 (GLOBE NEWSWIRE) -- Fairway Group Holdings Corp.
(Nasdaq:FWM), the parent company of Fairway Market, today announced that it
has successfully amended its existing senior credit agreement.
The amendment revises certain terms and covenants contained in the existing
$275 million credit agreement, including lowering the interest rate margin on
the facility by 150 basis points and reducing the "LIBOR floor" applicable to
LIBOR rate loans by 25 basis points. The repricing is expected to reduce the
Company's annualized cash interest payments by approximately $4.8 million. The
Company further expects that the fees and expenses incurred in connection with
the amendment will be paid back through reduced interest payments in
approximately nine months.
"We are pleased with our ability to amend our senior credit agreement to
achieve terms that improve our financial flexibility and lower our annualized
cash interest expense," said Edward Arditte, Fairway's Executive Vice
President and Chief Financial Officer. "We appreciate the support that we
received in this transaction from our banking partners, which reflects the
strength of our banking relationships and the solid fundamentals of our
business as we continue to execute on our growth strategy."
About Fairway Market
Fairway Market is a high-growth food retailer offering customers a
differentiated one-stop shopping experience "Like No Other Market". Fairway
has established itself as a leading food retailing destination in the Greater
New York City metropolitan area, with stores that emphasize an extensive
selection of fresh, natural and organic products, prepared foods and
hard-to-find specialty and gourmet offerings, along with a full assortment of
conventional groceries. Fairway is headquartered in New York, New York.
Except for historical information contained herein, the statements in this
release are forward-looking and made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements involve known and unknown risks and uncertainties and other factors
that may cause Fairway's actual results in current or future periods to differ
materially from forecasted results. Food retail is a large and highly
competitive industry, and Fairway's business involves many risks and
uncertainties, including, but not limited to: our ability to open new stores
on a timely basis or at all; our ability to achieve sustained sales and
profitable operating margins at new stores; the availability of financing to
pursue our new store openings on satisfactory terms or at all; our ability to
compete effectively with other retailers;the geographic concentration of our
stores;our ability to retain and attract senior management, key employees and
qualified store-level employees;our ability to satisfy our ongoing capital
needs and unanticipated cash requirements; and other risk factors detailed in
our filings with the Securities and Exchange Commission ("the SEC"), and
available at the SEC's website at www.sec.gov. You are urged to consider these
factors carefully in evaluating the forward-looking statements herein and are
cautioned not to place undue reliance on such forward-looking statements,
which are qualified in their entirety by this cautionary statement. The
forward-looking statements made herein speak only as of the date of this press
release and the company undertakes no obligation to publicly update such
forward-looking statements to reflect subsequent events or circumstances.
CONTACT: Fairway Group Holdings Corp.
Manager of Finance & Investor Relations
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