Advanced Marketing Services, Inc. Signs $60 Million Senior Credit Facility With Wells Fargo Foothill, Inc.
Advanced Marketing Services via BizWire
SAN DIEGO--(BUSINESS WIRE)--April 29, 2004--Advanced Marketing
Services, Inc. (NYSE:MKT), a leading global provider of customized
wholesaling and distribution services to book retailers and
publishers, announced that it has signed a new, five-year, $60 million
revolving secured credit facility with Wells Fargo Foothill, part of
Wells Fargo & Company (NYSE:WFC). This new agreement replaces the
Company's $45 million credit facility previously provided by other
lenders.
"We are very pleased about our new relationship with Wells Fargo
Foothill," commented Bruce C. Myers, AMS Executive Vice President and
Chief Financial Officer. "Securing new financing was a top priority of
the new AMS management, and we are very impressed with the agility,
responsiveness, and immediate grasp of our business needs demonstrated
by Wells Fargo Foothill. We believe this new credit facility will help
further our efforts to grow our company."
Mr. Myers continued, "The new credit facility is for a term of
five years and is based principally on our accounts receivable. The
Company currently has availability of $60 million under the new credit
facility, which we believe resolves the tight liquidity situation we
disclosed in March 2004. In addition, we no longer need monthly
forbearances required under the prior loan agreement with our
lenders."
"We are pleased to provide Advanced Marketing Services with this
credit facility to support the Company's working capital needs and
plans for future growth," said Scott R. Diehl, President of the
Commercial Finance Division of Wells Fargo Foothill. "With more than
twenty years of success in providing customized services to the world
of book retailers and publishers, we are proud to welcome AMS as a
Wells Fargo Foothill customer."
A summary of the terms of the new credit facility is included in a
Form 8-K that will be filed with the Securities and Exchange
Commission. The new credit facility prohibits the payment of cash
dividends on our common stock.
ABOUT WELLS FARGO FOOTHILL
Wells Fargo Foothill is a leading provider of senior secured
financing to middle-market companies across the United States and
Canada. It is part of Wells Fargo & Company, a diversified financial
services company with $397 billion in assets, providing banking,
insurance, investments, mortgage and consumer finance from more than
5,900 stores and the Internet (www.wellsfargo.com) across North
America and elsewhere internationally. Wells Fargo Bank, N.A. is the
only "Aaa"-rated bank in the United States. For more information,
visit Wells Fargo Foothill on the Internet at www.wffoothill.com.
ABOUT ADVANCED MARKETING SERVICES
Headquartered in San Diego, Advanced Marketing Services (AMS) is a
leading global provider of customized wholesaling, distribution and
publishing services to the book industry. The Company has operations
in the U.S., Canada, Mexico, Singapore, the United Kingdom and
Australia and employs approximately 1,400 people worldwide. AMS
provides a full range of value-added services that provide its retail
customers with book buying advice and expert supply chain management,
including advertising and promotional support, to ensure the success
of their book programs. The company's proprietary Vendor Managed
Inventory (VMI) software is a unique tool that allows its book
specialists to efficiently and effectively manage the book
distribution supply chain for the benefit of its membership warehouse
club customers. Publishers Group Worldwide (PGW), the global book
distribution arm of AMS, provides independent publishers with
exclusive full service English language sales and distribution
services. PGW ranks as one of the top 10 book vendors in the United
States and is also the largest North American distributor for
independent publishers.
Recent press releases on Advanced Marketing Services, Inc. are
available on both the Company's Web site, www.advmkt.com, and on
Business Wire, www.businesswire.com.
Forward-looking statements in this news release are made under the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. All statements other than statements of historical fact are
forward-looking statements that involve risks and uncertainties, and
include the statements that: (1) the new credit facility will help
future efforts to grow the company; and (2) the new facility resolves
the tight liquidity situation that was disclosed in March 2004.
Certain important factors could cause results to differ materially
from those anticipated by the forward-looking statements including
factors discussed from time to time in reports filed by the Company
with the Securities and Exchange Commission.