LOS ANGELES, Sept. 20 /PRNewswire-FirstCall/ -- Guess?, Inc. (NYSE: GES)
announced today that it has entered into a five-year $85 million secured
multinational revolving credit facility with Bank of America. This new
facility replaces the Company's existing asset-based facility with a group led
by Wachovia Securities, Inc., which had an initial term through September 27,
Commenting on the announcement, Carlos Alberini, President and Chief
Operating Officer, stated, "During this process, we have developed a strong
relationship with Bank of America. We are very pleased with the terms of the
new facility. The arrangement is less costly than the previous credit
facility and includes more favorable terms, which capitalizes on the strong
financial performance that the Company has delivered over the past few years."
Mr. Alberini continued, "This facility, along with the Company's operating
cash flows and strong cash position are expected to provide ample liquidity
and financial flexibility to meet the Company's planned operating and
At the time of closing, there were no borrowings due under the old credit
facility other than as a result of normal trade letter of credit obligations.
The Company did not draw on the new facility at closing.
Guess?, Inc. designs, markets, distributes and licenses a lifestyle
collection of contemporary apparel, accessories and related consumer products.
As of August 26, 2006, the Company owned and operated 326 retail stores in the
United States and Canada. The Company also distributes its products through
better department and specialty stores around the world. For more information
about the Company, please visit www.guess.com.
Except for historical information contained herein, certain matters
discussed in this press release, including statements concerning the Company's
future liquidity, are forward-looking statements that are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are only expectations, and involve known and
unknown risks and uncertainties, which may cause actual results in future
periods to differ materially from what is currently anticipated. Factors
which may cause actual results in future periods to differ materially from
current expectations include, among other things, our ability to anticipate
consumer preferences, effectively operate our retail stores, effectively
manage inventories, successfully execute our strategies, including our supply
chain and international growth strategies, unexpected developments or changes
in strategies resulting in the need for significant additional liquidity, and
general economic conditions and consumer confidence. In addition to these
factors, the economic and other factors identified in the Company's most
recent annual report on Form 10-K and other filings with the Securities and
Exchange Commission, including but not limited to the risk factors discussed
therein, could cause actual results to differ materially from current
Contact: Carlos Alberini
President & Chief Operating Officer
Dennis R. Secor
SVP & Chief Financial Officer
SOURCE Guess?, Inc.
CONTACT: Carlos Alberini, President & Chief Operating Officer,
+1-213-765-3582, Dennis R. Secor, SVP & Chief Financial Officer,
+1-213-765-3289, both of Guess?; Joe Teklits of ICR, +1-203-682-8258, for
Web site: http://www.guess.com
CO: Guess?, Inc.; Bank of America; Wachovia Securities, Inc.
IN: FAS RLT FIN
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7934 09/20/2006 08:00 EDT http://www.prnewswire.com