Pier 1 retires more debt

Says move protects its liquidity position

-- Home Textiles Today, 7/31/2009 9:44:00 AM

Fort Worth, Texas — Pier 1 Imports said Thursday it has retired $69.5 million in principal of its convertible senior notes, issuing new convertible debt and paying $5 million in cash.

Earlier this year, a foreign subsidiary of Pier 1 acquired $79 million of its notes. The company said that in total, it has retired $148.4 million in existing notes this fiscal year for a weighted average price of 63 cents on the dollar.

"We are very pleased with what we have been able to accomplish with our convertible notes," said Alex Smith, president and CEO. "Restructuring and reducing our convertible debt has allowed us to protect our liquidity position as we continue to work our way through this economic recession.

"We are entering the important fall and holiday selling seasons confident in our merchandise assortments and our stores," Smith added. "Now that we have addressed the convertible notes, we are able to focus our attention on the day-to-day execution of our business."