WARREN, Pa., June 28 /PRNewswire-FirstCall/ -- Blair Corporation (Amex:
BL), (http://www.blair.com ), a national multi-channel direct marketer of
women's and men's apparel and home products, today announced it had received a
commitment, subject to final documentation and standard closing conditions,
for $200 million in financing from PNC Financial Services Group, Inc. which
will be used to finance, in part, the Company's previously announced proposed
stock tender buyback.
Blair intends to pay down this credit facility from PNC with the proceeds
received from the previously announced sale of its credit portfolio to
Alliance Data Systems Corp. The closing of the Alliance Data transaction
remains on target for the fourth quarter of 2005.
Combining the credit facility from PNC with $40 million of Blair's cash
reserves, the Company will initiate a stock tender buyback at $42 per share,
for the purchase of approximately 4.4 million shares of Blair's outstanding
common stock for an aggregate price of approximately $185 million. The Company
intends to commence the tender not later than August 1, 2005, and it will be
completed shortly thereafter.
"We are pleased to announce that Blair has received this commitment from
PNC for $200 million in financing and appreciate this ongoing support from our
long-term financial partner," stated Bryan Flanagan, senior vice president and
CFO.
"By reaching this agreement, we remain on track to initiate our stock
tender buyback and reward our investors," said John Zawacki, president and
CEO. "At the same time, we are convinced that a continued focus on our core
customers and our ability to remain an independent Warren-based company will
maximize shareholder value now and in the future."
ABOUT BLAIR
Headquartered in Warren, Pennsylvania, Blair Corporation sells a broad
range of women's and men's apparel and home products through direct mail
marketing and its Web sites http://www.blair.com and
http://www.irvinepark.com . Blair Corporation employs more than 2,000 people
and operates facilities and retail outlets in Northwestern Pennsylvania as
well as a catalog outlet in Wilmington, Delaware. The Company, which has
annual sales of approximately $500 million, is publicly traded on the American
Stock Exchange (Amex: BL).
BLAIR CORPORATION SECURITY HOLDERS ARE ADVISED TO READ BLAIR CORPORATION'S
TENDER OFFER STATEMENT WHEN IT BECOMES AVAILABLE AS IT WILL CONTAIN IMPORTANT
INFORMATION REGARDING THE TENDER OFFER. BLAIR CORPORATION WILL NOTIFY ALL OF
ITS SECURITY HOLDERS WHEN THE TENDER OFFER STATEMENT BECOMES AVAILABLE. WHEN
AVAILABLE, BLAIR CORPORATION SECURITY HOLDERS MAY GET THE TENDER OFFER
STATEMENT AND OTHER FILED DOCUMENTS RELATED TO THE TENDER OFFER FOR FREE AT
THE U.S. SECURITIES AND EXCHANGE COMMISSION'S WEB SITE (http://www.sec.gov ).
IN ADDITION, BLAIR CORPORATION SECURITY HOLDERS MAY REQUEST A FREE COPY OF THE
TENDER OFFER STATEMENT AND OTHER DOCUMENTS RELATED TO THE TENDER OFFER FROM
BLAIR CORPORATION WHEN AVAILABLE.
This release contains certain statements, including without limitation,
statements containing the words "believe," "plan," "expect," "anticipate,"
"strive," and words of similar import relating to future results of the
Company (including certain projections and business trends) that are "forward-
looking statements" as defined in the Private Securities Litigation Reform Act
of 1995. Actual results may differ materially from those projected as a
result of certain risks and uncertainties, including but not limited to,
changes in political and economic conditions, demand for and market acceptance
of new and existing products, as well as other risks and uncertainties
detailed in the most recent periodic filings of the Company with the
Securities and Exchange Commission.
SOURCE Blair Corporation
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Related links:
http://www.blair.com
http://www.irvinepark.com
CONTACT:
Bryan Flanagan, SVP, Chief Financial Officer,
Blair Corporation, +1-814-723-3600; Carl Hymans of G. S. Schwartz
& Co., +1-212-725-4500, carlh@schwartz.com, for Blair Corporation
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