News

« Headlines

Borders US finalises Pershing financing

08.04.08 Anna Richardson

Borders Group in the US has finalised a revised financing agreement with its largest shareholder Pershing Square Capital Management, with terms the company described as "more advantageous" to the group than the original agreement announced in March.

The revised agreement includes a lower interest rate of 9.8%, down from 12.5%, on the $42.5m loan from Pershing. Pershing has also increased its offer to acquire Borders' international subsidiaries from $125m to $135m, if Borders cannot find another buyer. The number of warrants issued to Pershing has also been lowered to 9.55 million from 14.7 million.

Borders Group c.e.o. George Jones said that the group was pleased with the "more advantageous terms", which still provided "the necessary funding to continue implementing our key initiatives". He added that Borders would now focus on the "broader strategic alternatives process".

Anna Richardson Home Borders Group Global

See Also