PFSweb Extends $7.5 Million Bank Facility with Comerica; Finances Capital Expansion by Issuing $5 Million in Industrial Revenue Bonds
PLANO, Texas--Jan. 4, 2005--PFSweb, Inc. (Nasdaq:PFSW), a global provider of integrated business process outsourcing (BPO) solutions, has extended its $7.5 million revolving credit facility with Comerica Bank. The agreement provides for up to $5 million of eligible accounts receivable in the United States through March 2007 and up to $2.5 million of eligible equipment purchases through June 2008.
PFSweb also issued $5 million of Industrial Revenue Bonds through the Mississippi Bond Financing Corporation. Benefits of this financing arrangement include lower interest rates and the availability of tax credits. Proceeds from the favorable debt structure will be used to fund capital improvements at the recently leased facility in Southaven, Miss. The new distribution center will support a new Fortune 500 client relationship. (See Aug. 30, 2004 release.) The Industrial Revenue Bonds are secured by a $5 million letter of credit issued by Comerica Bank.
"We are extremely pleased to extend our relationship with Comerica," emphasized Tom Madden, Senior Partner and Chief Financial Officer. "Comerica has become a valuable financing partner for PFSweb. We believe the Comerica facility extension reflects Comerica`s support for our operating plan, which has been positively influenced by our recently improved financial performance. This funding continues to supplement our operations and provides added support to our targeted growth."
"We are excited about the opportunities our new facility in Southaven has generated," stated Mark Layton, Senior Partner and Chief Executive Officer. "Along with the addition of the new Fortune 500 client relationship, we have added many contacts with key personnel in Mississippi. Leaders at the City of Southaven, DeSoto County and the state have been very welcoming to PFSweb. They were very receptive to our needs and provided tax incentives that made our decision to add a facility in a new state, only a few miles from our existing distribution hub in Memphis, an easy one. We are eager to cultivate these relationships as we continue to grow and expand our operations."
"The Bonds and Comerica facility extension underscore PFSweb`s positive business outlook," added Madden. "The additional financing has allowed us to maintain our solid cash position while making capital investments to support our growth. We believe our infrastructure investments and the Comerica facility extension and bond issuance serve as strong signals to existing and prospective brand name clients that we are committed to maintaining our leadership position in the evolution of outsourcing. We continue to seek incremental financing resources to support our future growth opportunities."
"Comerica has worked well with us to structure this facility to meet PFSweb`s unique business," Madden added. "We look forward to continuing our relationship with this premier financial institution."
About PFSweb, Inc.
PFSweb`s comprehensive outsourcing solutions provide proven, fast and secure business infrastructure to enable traditional and e-commerce strategies. PFSweb solutions include: professional consulting services, e-marketplace logistics, order management, web-enabled customer contact centers, customer relationship management, international distribution and fulfillment services, reverse logistics, billing and collection services, kitting and assembly services and ERP information interfacing utilizing its Entente Suite(SM).
PFSweb develops and deploys integrated business infrastructure solutions and fulfillment services for Fortune 1000, Global 2000 and brand name companies, including third party logistics, call center support and e-commerce services. The company serves a multitude of industries and company types, including such clients as Adaptec (Nasdaq:ADPT), CHiA`SSO, Dupont Fluoroproducts, FLAVIA(R) Beverage Systems, Hewlett-Packard (NYSE:HPQ), iGo/Mobility Electronics (Nasdaq:MOBE), International Business Machines (NYSE:IBM), Nokia (NYSE:NOK), Pfizer, Inc. (NYSE:PFE), Raytheon Aircraft Company, Rene Furterer USA, Roots, Inc., Shell Energy Services Company, Smithsonian Institution and Xerox (NYSE:XRX).
The matters discussed in this news release, particularly information regarding future revenue, earnings, business plans and goals, consist of forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are subject to and involve risks and uncertainties, which could cause actual results to differ materially from the forward-looking information. Such statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management`s assumptions and the Company`s future performance are both subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially. The Company undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking information contained herein is subject to the risk factors and uncertainties described in the Company`s filings with the Securities and Exchange Commission, which risk factors and uncertainties are incorporated by this reference as though fully set forth herein.
To find out more about PFSweb, Inc. (Nasdaq:PFSW), visit our website at www.pfsweb.com. PFSweb is a registered trademark. Entente Suite is a service mark of PFSweb. All rights reserved.
CONTACT:
PFSweb, Inc.
Thomas J. Madden, 972-881-2900
Michael A. Burns & Associates
Preston F. Kirk, 830-693-4447
kirk@281.com
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