Longs Drug Stores amends credit facility |
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Wed, 31 Jan 2007 00:50
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WALNUT CREEK, Calif. (AFX) - Longs Drug Stores Corp. on Tuesday said it agreed to an amended five-year, $325 million secured revolving credit facility, replacing a previous credit line.The amended facility expires in January 2012 and will be used to finance capital spending, working capital needs and other purposes. The facility was arranged by a group of banks led by the Bank of America.The facility includes an option to increase borrowings to $400 million from $325 million subject to certain conditions.'This amended credit facility strengthens our liquidity, increases our financial flexibility and gives us a more attractive source of funding to pursue our financial and strategic objectives,' Steven F. McCann, executive vice president and chief financial officer, said in a statement.The company originally established a five-year $280 million facility in August 2004, which was expanded to $325 million in November.Shares of Longs Drug Stores added 30 cents to close at $43.29 on the New York Stock Exchange.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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