Borders Survives, Gets $90 Million Loan

Borders Announces $700 Million Revolving Credit Facility and $90 Million Term Loan

Company meets $42.5 million loan obligation

ANN ARBOR, Mich./AUTHORLINK NEWS--March 31, 2010 /Borders Group, Inc., which had been tetering on the edge of bankruptcy, today announced that it has entered into an amended and restated revolving credit agreement. The new, $700 million senior secured asset-based credit facility matures in March 2014 and replaces the company's existing revolving credit agreement, which would have matured in July 2011. Banc of America Securities LLC, Wells Fargo Retail Finance, LLC, J.P. Morgan Securities Inc. and GE Capital Markets, Inc. acted as joint lead arrangers and book runners. Bank of America, N.A. will serve as the administrative agent. Borrowings under the facility will be used for general corporate purposes.

The company also closed on a $90 million term loan credit facility, which will mature in March 2014 with the exception of $10 million of that facility, which Borders will amortize over four months beginning in September and concluding in December of this year. Banc of America Securities LLC acted as sole arranger and book runner on the facility and GA Capital LLC will serve as the administrative agent. Lenders are expected to include an affiliate of Stone Tower Capital LLC, a $39 billion credit focused asset management firm; funds managed by Tennenbaum Capital Partners, LLC, a Santa Monica-based special situations investment firm; and Gordon Brothers Merchant Partners.

Separately, Borders Group has met its obligation to Pershing Square Capital Management, L.P. for payment of the $42.5 million senior secured term loan due April 1.

Details of the financing arrangements will be included in a Form 8-K to be filed with the Securities and Exchange Commission.

"We are pleased to have the continued support of our lending group and term loan investors," said Borders Group Chief Financial Officer Mark Bierley. "With the completion of these transactions, the company can turn its focus to driving sales growth and improving profitability."

About Borders Group

Headquartered in Ann Arbor, Mich., Borders Group, Inc. (NYSE: BGP) is a leading specialty retailer of books as well as other educational and entertainment items. The company employs approximately 19,500 throughout the U.S., primarily in its Borders(R) and Waldenbooks(R) stores.
SOURCE Borders Group, Inc.