Express, Inc. Announces Intention to Prepay $125 Million Term Loan in Full

COLUMBUS, Ohio, Dec. 6, 2011 /PRNewswire/ -- Express, Inc. (NYSE: EXPR), a specialty retail apparel chain operating more than 600 stores, today announced that the Board of Directors ("Board") of Express, Inc. (the "Company") has authorized  the Company to prepay the outstanding balance of its $125 million secured term loan.  The Company intends to prepay the term loan in December 2011 with cash on hand. After the prepayment, the Company expects to end the year with more than $100 million of cash on hand and no borrowings outstanding under its $200 million asset-based revolving credit facility.  As a result of the prepayment, the Company expects to incur charges to write off unamortized debt issuance costs totaling approximately $2.4 million in the fourth quarter of 2011.The Company estimates that the prepayment of the term loan will reduce the Company's interest payments by approximately $0.7 million in fiscal 2011 and $1.3 million quarterly through July of 2014.

"Approval to prepay the entire balance of the term loan reflects the strong cash flow generation of our Company and our continuing commitment to return value to our stockholders.  This debt prepayment recognizes that, even with the investments we plan to make to support our long-term growth, we continue to expect to generate significant free cash flow," said D. Paul Dascoli, Senior Vice President and Chief Financial Officer.

About Express, Inc.:         

Express is a specialty apparel and accessories retailer of women's and men's merchandise, targeting the 20 to 30 year old customer.  The Company has over 30 years of experience offering a distinct combination of fashion and quality for multiple lifestyle occasions at an attractive value addressing fashion needs across work, casual, jeanswear, and going-out occasions.  The Company currently operates more than 600 retail stores, located primarily in high-traffic shopping malls, lifestyle centers, and street locations across the United States, in Canada and in Puerto Rico and also distributes its products through the Company's e-commerce website, express.com. 

Forward-Looking Statements:

Certain statements are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include any statement that does not directly relate to any historical or current fact and may herein include, but are not limited to, statements regarding plans to prepay the term loan and anticipated effects of the prepayment on the Company's financial position, expectations regarding cash on hand, availability under the Company's asset-based revolving credit facility, free cash flow, and planned investments.  Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate.  These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements.  Among these factors are (1) changes in consumer spending and general economic conditions; (2) our ability to identify and respond to new and changing fashion trends, customer preferences and other related factors; (3) fluctuations in our sales and results of operations on a seasonal basis and due to store events, promotions and a variety of other factors; (4) increased competition from other retailers; (5) the success of the malls and shopping centers in which our stores are located; (6) our dependence upon independent third parties to manufacture all of our merchandise; (7) our growth strategy, including our international expansion plan; (8) our dependence on a strong brand image; (9) our dependence upon key executive management; (10) our reliance on Limited Brands to provide us with certain key services for our business; (11) our substantial indebtedness and lease obligations; and (12) increased costs as a result of being a public company.  Additional information concerning these and other factors can be found in Express, Inc.'s filings with the Securities and Exchange Commission.  We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Company Contact:
D. Paul Dascoli
Senior Vice President &
Chief Financial Officer
(614) 474-4300

Media Contact:
Barbara Coleman
Corporate Communications
(614) 474-4083
[email protected]

Investor Contacts:
ICR, Inc.
Allison Malkin / Anne Rakunas
(203) 682-8200 / (310) 954-1113

SOURCE Express, Inc.