Borders Receives $550M From GE Capital (BGP)

Borders Group, Inc. BGP today announced that it has received a commitment from GE Capital, Restructuring Finance to provide a $550 million senior secured credit facility that, upon completion, including the obtaining of $125 million of additional junior debt financing via the conversion of vendor payables and/or external sources, will provide Borders with the financial flexibility and an appropriate level of liquidity to move forward with its strategy to reposition its business model and the Borders brand. GE Capital provided its financing commitment following a comprehensive review of the company's strategic plan to restructure its business model by focusing on core business areas in order to improve profitability and cash flow. Shares of Borders are skyrocketing in after hours trading, gaining 34 cents to $1.15, a gain of nearly 42% on the back of the credit facility news.