CSS INDUSTRIES, INC. ANNOUNCES NEW REVOLVING CREDIT FACILITY
CSS Industries, Inc. (NYSE:CSS) announced today a new five-year revolving credit facility with Wells Fargo Bank, National Association ("Wells Fargo") and Citizens Bank of Pennsylvania ("Citizens Bank"). Borrowing availability under the new revolving credit facility fluctuates from a low of $50,000,000 during times when the Company historically has had little or no debt outstanding to a maximum level of $150,000,000 during the Company's historical seasonal peak borrowing periods. This new structure is expected to provide ample borrowing capacity while reducing the Company's costs during historically low borrowing periods. The new revolving credit facility, which expires on March 17, 2016, was structured and arranged by Wells Fargo, and it replaces the Company's $110,000,000 revolving credit facility, which had been due to expire in November 2011, and its accounts receivable securitization facility, which had been due to expire in July 2011.
"We are very pleased that we have been able to secure this revolving credit facility with Wells Fargo Bank and Citizens Bank," commented Vincent A. Paccapaniccia, CSS' Vice President - Finance and Chief Financial Officer. "We believe that this new revolving credit facility provides favorable terms that will provide sufficient borrowing capacity to fund CSS' current seasonal borrowing needs as well as to provide the platform to underwrite our future growth. Wells Fargo and Citizens Bank have been long-time partners with CSS, and we look forward to continuing and building these relationships."
CSS is a consumer products company primarily engaged in the design, manufacture, procurement, distribution and sale of seasonal and all occasion social expression products, principally to mass market retailers. These seasonal and all occasion products include gift wrap, gift bags, gift boxes, gift card holders, boxed greeting cards, gift tags, decorative tissue paper, decorations, classroom exchange Valentines, decorative ribbons and bows, floral accessories, Halloween masks, costumes, make-up and novelties, Easter egg dyes and novelties, craft and educational products, memory books, stationery, journals, notecards, infant and wedding photo albums, scrapbooks, and other gift items that commemorate life's celebrations.
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 including, among others, statements relating to the sufficiency of the new credit facility to meet the Company's current and future needs. Forward-looking statements are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management as to future events and financial performance with respect to the Company's operations. Forward-looking statements speak only as of the date made. The Company undertakes no obligation to update any forward-looking statements to reflect the events or circumstances arising after the date as of which they were made. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors, including without limitation, general market and economic conditions; increased competition (including competition from foreign products which may be imported at less than fair value and from foreign products which may benefit from foreign governmental subsidies); increased operating costs, including labor-related and energy costs and costs relating to the imposition or retrospective application of duties on imported products; currency risks and other risks associated with international markets; risks associated with acquisitions, including acquisition integration costs and the risk that the Company may not be able to integrate and derive the expected benefits from such acquisitions; risks associated with the Company's enterprise resource planning systems standardization project, including the risk that the cost of the project will exceed expectations, the risk that the expected benefits of the project will not be realized and the risk that implementation of the project will interfere with and adversely affect the Company's operations and financial performance; the risk that customers may become insolvent, may delay payments or may impose deductions or penalties on amounts owed to the Company; costs of compliance with governmental regulations and government investigations; liability associated with non-compliance with governmental regulations, including regulations pertaining to the environment, Federal and state employment laws, and import and export controls and customs laws; and other factors described more fully in the Company's annual report on Form 10-K for the fiscal year ended March 31, 2010 and elsewhere in the Company's filings with the Securities and Exchange Commission. As a result of these factors, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, the Company.
FOR FURTHER INFORMATION CONTACT:
Vincent A. Paccapaniccia
Chief Financial Officer