ValueVision Secures $40M Credit Facility; Sees Q4 Sales of $148M vs $169.56M

ValueVision Media, Inc.

, a multichannel electronic retailer operating as ShopNBC (www.shopnbc.com), today announced it has secured a $40 million, lower-cost revolving credit facility with PNC Bank, National Association. The Company has also renewed three TV distribution agreements while securing savings of approximately $15 million in annual TV distribution expense commencing January 2013 through the early renewal of its largest TV distribution agreement. In addition, ValueVision announced anticipated sales results for its fiscal 2011 fourth quarter (Q4) and full year ended January 28, 2012. ValueVision has secured a $40 million revolving credit facility with PNC Bank, National Association, a member of The PNC Financial Services Group, Inc.

. Loans under the new revolving credit facility will bear an interest rate of LIBOR plus 3% per annum. Proceeds will be used to fund the retirement of the Company's existing 11% per annum, $25 million term loan and the payment of an approximately $12.4 million deferred payment obligation to a TV distribution provider during Q1 2012. ValueVision expects to report Q4 '11 net sales of approximately $148 million, a decline of approximately 18% vs. Q4 '10. The net sales decline primarily reflects challenges in Consumer Electronics, which are expected to continue in the near-term. The Company expects fiscal 2011 net sales of approximately $558 million, a decrease of approximately 1% versus the prior year. ValueVision ended fiscal 2011 with $35.1 million in cash and restricted cash, which is an increase of $2.4 million during the quarter, reflecting positive operating cash flow in the quarter.