Pier 1 2012 Annual Report Download - page 34

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During the first quarter of fiscal 2012, the Company amended and restated its $300 million secured credit
facility. The amended and restated facility effectively refinanced the Company’s existing facility, and has a five-
year term which will expire in April 2016, an initial line of $300 million and includes a $100 million accordion
feature. As of February 25, 2012, the Company had no outstanding borrowings and had approximately $43.4
million in letters of credit and bankers acceptances outstanding. The calculated borrowing base was $255.6
million, of which $212.2 million remained available for additional borrowings. At the end of fiscal 2012, the
Company was in compliance with all required covenants stated in the agreement.
The Company’s secured credit facility may limit certain investments and, in some instances, limit
payment of cash dividends and repurchases of the Company’s common stock. The Company will not be
restricted from paying certain dividends unless credit extensions on the line result in availability over a specified
period of time that is projected to be less than 20% of the lesser of either $300 million or the calculated
borrowing base, subject to the Company meeting a fixed charge coverage requirement when availability over the
same specified period of time is projected to be less than 50% of the lesser of either $300 million or the
calculated borrowing base. See Note 5 to the Notes to Consolidated Financial Statements for further discussion of
the Company’s secured credit facility.
During fiscal 2012, the Company repurchased approximately 8% of the Company’s common stock
outstanding under the Board approved initial share repurchase program. A total of 9,498,650 shares of its
common stock were repurchased at a weighted average cost of $10.53 per share for a total cost of $100.0 million.
On October 13, 2011, the Company’s Board of Directors authorized a new $100 million share repurchase
program. As of February 25, 2012, no shares had been repurchased under the new program and $100 million
remained available for share repurchase. The timing of the repurchases will depend on several factors including,
among others, prevailing market conditions and prices.
On April 5, 2012, subsequent to year end, the Company’s Board of Directors declared a $0.04 per share
quarterly cash dividend on the Company’s outstanding shares of common stock. The $0.04 quarterly cash
dividend will be paid on May 2, 2012 to shareholders of record on April 18, 2012.
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