Hastings Amends Credit Line5 Mar, 2007 By: Erik Gruenwedel
Hastings Entertainment March 5 announced it had finalized a $15 million amendment to its secured revolving credit facility with Fleet Retail Group.
Amarillo, Tex.-based Hastings operates 154 stores largely throughout the Southwest.
Under terms of the new facility, Hastings can now repurchase up to $30 million of its capital stock (compared $15 million) at lower interest rates.
“We are pleased with our excellent working relationship with Fleet,” said John Marmaduke, president and CEO of Hastings. “This amendment offers increased shareholder value by lowering our borrowing costs and increasing the potential repurchase in our stock repurchase program going forward to more than $19 million.”
Companies often repurchase outstanding shares of their own stock in an effort to increase their value and show support.
Hastings posted a loss of $2.2 million in the third quarter (ended Oct. 31) despite a 16.9% increase in comparable same-store (open at least a year) video sales and a 2.7% increase in same-store video rentals.
The company will issue fourth quarter (ending Jan. 31) results March 26.