FTD enters new $350 million five-year secured revolving facility

By Jennifer Chiou

New York, July 17 - United Online, Inc. wholly owned subsidiary FTD Cos., Inc. entered into a new $350 million five-year secured revolving credit facility with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

BofA Merrill Lynch and Wells Fargo Securities, LLC acted as joint lead arrangers and book managers.

The interest rate is Libor plus 150 basis points to 225 bps depending on FTD's net leverage ratio. The initial interest rate is Libor plus 175 bps.

At closing, FTD drew $220 million of the new revolver and used about $19 million of its existing cash balance to repay its previously outstanding credit facilities in full.

The credit agreement permits the previously announced spin-off of FTD from United Online.

FTD provides floral delivery services. United Online is based in Woodland Hills, Calif.

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