AT THE COMPANY:
WICKES INC.
Jim Hopwood
Vice President Finance, Treasurer
(847) 367-3552
WICKES INC. COMPLETES SENIOR FINANCING; COMMENTS ON
PREVIOUSLY ANNOUNCED TENDER OFFER
INCREASES REVOLVING CREDIT FACILITY BY MORTGAGING REAL PROPERTY
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VERNON HILLS, IL, DECEMBER 13, 2000 - WICKES INC. (NASDAQ:WIKS) today announced
that it has amended and restated its senior credit facility with Fleet Retail
Finance Inc. as administrative agent and Bank of America N.A. as documentation
agent.
The Company has increased its capacity to borrow under this credit facility by
approximately $48 million by pledging substantially all of the Company's assets
including 90 of its owned parcels of real estate. The majority of the increase
in borrowing capacity will be used to complete the Company's previously
announced Senior Subordinated Note tender offer.
The Company also said it has waived the condition to the tender offer requiring
receipt by the Company of tenders and consents from Holders of a majority in
aggregate principal amount of the outstanding Notes not owned by the Company or
its affiliates.
The Company said that all other terms and conditions of the tender offer, as set
forth in the Offer to Purchase and Consent Solicitation Statement dated and
mailed to registered holders November 21, 2000, remain in effect. As previously
announced, the tender offer is scheduled to expire on Wednesday, December 20,
2000 at 12:00 midnight, New York City time.
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Accordingly, holders of Notes that were validly tendered and not withdrawn prior
to 5:00 p.m., New York City time, on December 12, 2000, and that are accepted
for purchase will receive a price of $605.00 per $1,000, plus a consent payment
of $30.00 per $1,000, plus accrued and unpaid interest to the settlement date.
Holders of Notes that are validly tendered and not withdrawn after 5:00 p.m.,
New York City time, on December 12, 2000, and prior to the expiration date, and
that are accepted for purchase will receive a price of $605.00 per $1,000, plus
accrued and unpaid interest to the settlement date.
Commenting on the credit facility and tender offer, J. Steven Wilson, Wickes
Inc. Chairman and Chief Executive Officer, stated, "We are very pleased to have
extended our existing bank group relationship and to have increased our senior
credit facility. While our senior subordinated note tender offer will not expire
until later this month, we are pleased with the reception our offer has received
from our noteholders and we believe it will achieve our financial goals."
Company officials confirmed that the amended and restated credit facility is
secured by substantially all of the Company's assets and will be superior to any
remaining senior subordinated notes outstanding after the tender offer is
completed. The Company also stated that the increased availability from the
credit facility is less than the Company's original $55 million expectation due
to lower than anticipated appraised values and a lender requirement that the
Company establish a reserve against availability for environmental issues.
David T. Krawczyk, Wickes Inc. President and Chief Operating Officer, added,
"Wickes now believes that it has the ability to buy every note that is tendered
pursuant to our offer. Our intention is to finalize our tender offer and
continue to pursue the remaining Build 2003 objectives which we established for
the Company in late 1998."
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Payments for validly tendered Notes will be made three business days following
the expiration of the offer.
The offer and consent solicitation are made only upon, and are subject to, the
terms and conditions contained in Wickes' Offer to Purchase and Consent
Solicitation statement dated and mailed to registered holders November 21, 2000.
Questions or requests for assistance concerning the offer should be directed to
Banc of America Securities LLC, which will act as the exclusive Dealer Manager
for the offer, at (704) 386-1758 (collect), or (888) 292-0070 (toll free).
Requests for additional copies of any documents may be directed to the
information agent, D.F. King & Co., Inc., at (800) 488-8095 (toll free), or
(212) 269-5550 (banks and brokers - collect). The depositary agent is Bankers
Trust Company.
Wickes Inc. is a leading distributor of building materials and manufacturer of
value-added building components in the United States, serving primarily building
and remodeling professionals. Wickes Inc.'s web site, http://www.wickes.com
offers a full range of valuable services about the building materials and
construction industry. The company is traded on the Nasdaq stock market under
the stock symbol WIKS.
Safe Harbor Statement
This release contains forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are
information of a non-historical nature and are subject to risks and
uncertainties that are beyond the company's ability to control. The company
cautions shareholders and prospective investors that the following factors may
cause actual results to differ materially from those indicated by the forward-
looking statements: costs of materials sold; changes in selling prices;
competition within the building materials supply industry; the effects of
economic conditions; as well as other factors set forth in the company's Form
10-K and other documents, which are on file with the Securities and Exchange
Commission.
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