KANSAS CITY, Mo., Feb 1 /PRNewswire/ -- Payless Cashways, Inc.
(OTC Bulletin Board: PCSH), a full-line building materials and finishing
products company focusing on the professional builder, remodel and repair
contractor, institutional buyer and project-oriented consumer, today announced
that the Company has seasonally expanded its revolving line of credit with
supplemental loan participation from Hilco Capital, LP.
Effective immediately, borrowing availability under the Company's
$260 million existing line of credit has been increased by 5.6% for a
six-month time period. An additional participation of $15 million by Hilco
Capital, LP into the asset-based loan facility led by Congress Financial
Corporation will support the 5.6% advance rate increase through July 31, 2001.
Millard Barron, President and CEO, commented, "We are pleased to attract
the support of another strong financial partner like Hilco Capital, LP to
participate in our facility. This new investment reinforces our vendors' and
our associates' confidence in our business. The seasonal overline will
provide us additional flexibility to fund vendor payables as we increase
inventories of key products in preparation for our strongest selling season.
The expanded line also will be used to fund working capital requirements
during the Company's traditionally slow winter season."
Payless Cashways, Inc. is a full-line building material and finishing
products company focusing on the professional builder, remodel and repair
contractor, institutional buyer and project-oriented consumer. The Company
operates 128 retail stores and 7 Builders Resource facilities in 17 states
located in the Midwestern, Southwestern, Pacific Coast and Rocky Mountain
areas. The Company also operates 12 distribution and manufacturing facilities
in 7 states. The retail stores operate under the names Payless Cashways,
Furrow, Lumberjack, Hugh M. Woods Knox Lumber, Contractor Supply.
Forward-Looking Statements
Forward-looking statements are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. There are certain
important factors that could cause results to differ materially from those
anticipated by the forward-looking statements made above. These statements
are based on the current plans and expectations of the Company. Investors are
cautioned that all forward-looking statements involve risks and uncertainty.
Among the factors that could cause actual results to differ materially are the
following: commodity prices; the strength of the commercial real estate
market, competitor activities; interest rates; supplier support; stability of
customer demand; stability of the work force; consumer spending and debt
levels; new and existing housing activity; product mix; growth of certain
market segments; weather; an excess of retail space devoted to the sale of
building materials; and continued vendor and financial institutional support.
Additional information concerning these and other factors is contained in the
Company's SEC filings, which are available by contacting the Company or on the
Company's website, http://payless.cashways.com .
SOURCE Payless Cashways, Inc.
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Related links:
http://payless.cashways.com
CONTACT:
Richard B. Witaszak, Sr. V.P. - Finance and
CFO of Payless Cashways, 816-347-6974,
webinvestor@payless.cashways.com
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