The Bon-Ton Stores, Inc. Announces Redemption of Senior Notes Due 2017
September 30 2016 - 8:30AM
The Bon-Ton Stores, Inc. (NASDAQ:BONT) announced
today that it will redeem the entirety of its outstanding 10 5/8%
Second Lien Senior Secured Notes due 2017 (the "Notes").
The aggregate principal amount outstanding of the Notes is
approximately $57 million. The Notes will be redeemed on
November 29, 2016, at a redemption price of 100% of the principal
amount thereof, plus accrued and unpaid interest on the Notes of
approximately $21.84 per $1,000 of principal amount.
Nancy A. Walsh, Executive Vice President and Chief Financial
Officer, commented, “I am pleased that the company is repaying the
2017 Senior Notes well in advance of the July 2017 maturity date.
The redemption meets our objective of reducing short-term debt and
improving our capital structure.”
A notice of redemption setting forth the redemption procedures
is being provided to holders of the Notes through Wells Fargo Bank,
N.A., the Trustee under the Indenture governing the Notes. Copies
of the notice of redemption and additional information relating to
the procedures for redemption may be obtained from Wells Fargo,
Corporate Trust Operations, MAC N9300-070, 600 South Fourth Street,
Minneapolis, MN 55402, telephone: 800-344-5128.
About The Bon-Ton Stores, Inc.
The Bon-Ton Stores, Inc., with corporate headquarters in York,
Pennsylvania and Milwaukee, Wisconsin, operates 267 stores, which
includes nine furniture galleries and five clearance centers, in 26
states in the Northeast, Midwest and upper Great Plains under the
Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman,
Herberger’s and Younkers nameplates. The stores offer a broad
assortment of national and private brand fashion apparel and
accessories for women, men and children, as well as cosmetics and
home furnishings. For further information, please visit the
investor relations section of the Company’s website at
http://investors.bonton.com.
Cautionary Note Regarding Forward-Looking Statements
Certain information included in this press release contains
statements that are forward-looking within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements, which may be identified by words such
as “may,” “could,” “will,” “plan,” “expect,” “anticipate,”
“believe,” “estimate,” “project,” “intend” or other similar
expressions and include the Company’s fiscal 2016 guidance, involve
important risks and uncertainties that could significantly affect
results in the future and, accordingly, such results may differ
from those expressed in any forward-looking statements made by or
on behalf of the Company. Factors that could cause such differences
include, but are not limited to: risks related to retail businesses
generally; a significant and prolonged deterioration of general
economic conditions which could negatively impact the Company in a
number of ways, including the potential write-down of the current
valuation of intangible assets and deferred taxes; risks related to
the Company’s proprietary credit card program; potential increases
in pension obligations; consumer spending patterns, debt levels,
and the availability and cost of consumer credit; additional
competition from existing and new competitors or changes in the
competitive environment; inflation; deflation; changes in the costs
of fuel and other energy and transportation costs; weather
conditions that could negatively impact sales; uncertainties
associated with expanding or remodeling existing stores; the
ability to attract and retain qualified management; the dependence
upon relationships with vendors and their factors; a data security
breach or system failure; the ability to reduce or control SG&A
expenses, including initiatives to reduce expenses and improve
efficiency; operational disruptions; unsuccessful marketing
initiatives; the ability to expand our capacity and improve
efficiency through our new eCommerce fulfillment center; changes
in, or the failure to successfully implement, our key strategies,
including initiatives to improve our merchandising, marketing and
operations; adverse outcomes in litigation; the incurrence of
unplanned capital expenditures; the ability to obtain financing for
working capital, capital expenditures and general corporate
purposes; the impact of regulatory requirements including the
Health Care Reform Act and the Dodd-Frank Wall Street Reform and
Consumer Protection Act; the inability or limitations on the
Company’s ability to favorably adjust the valuation allowance on
deferred tax assets; and the financial condition of mall operators.
Additional factors that could cause the Company’s actual results to
differ from those contained in these forward-looking statements are
discussed in greater detail under Item 1A of the Company’s Form
10-K filed with the Securities and Exchange Commission.
CONTACT:
Investor Relations
Wendy Wilson
414-347-5153
Wendy.Wilson@bonton.com