Tandycrafts Announces Extension of Credit Facility

Apr 18, 2001, 01:00 ET from Tandycrafts, Inc.

    FORT WORTH, Texas, April 18 /PRNewswire/ -- Tandycrafts, Inc. (NYSE:   TAC)
 today announced that its lenders have extended its current $32.8 million
 credit facility subject to Tandycrafts fulfilling certain terms and
 conditions, including those terms summarized below.
     The Fort Worth-based maker and marketer of picture frames and wall decor
 said that, by May 25, 2001, Tandycrafts is required to deliver to its lenders
 binding commitment letters that will allow Tandycrafts to repay its current
 lenders in full by June 25, 2001.  In addition, upon the earlier of the
 closing of the financing or sale of Tandycrafts' Mexican operations or
 June 30, 2001, the amount of the current facility will be reduced by the
 greater of $5 million or the net proceeds generated from such financing or
 sale.  If Tandycrafts sells its headquarters' building in Fort Worth, the
 amount of the current facility would also be reduced by the net proceeds from
 such sale.  Tandycrafts also stated that it would reprice approximately
 508,104 warrants previously issued to its lenders from $1.18 per share to
 $0.35 per share.  Tandycrafts' lenders extended the termination date of the
 current credit facility from March 31, 2001, until June 30, 2002.
     Tandycrafts also announced that, on April 12, 2001, it submitted a plan to
 the New York Stock Exchange (NYSE) demonstrating how it plans to bring
 Tandycrafts into compliance with the NYSE continued listing standards within
 eighteen months.  There can be no assurance that the NYSE will accept
 Tandycrafts' plan.
     Tandycrafts and its investment banking firm intend to explore the
 strategic alternatives of Tandycrafts, including a possible sale, and to
 continue their efforts to refinance Tandycrafts' existing credit facility.
 However, there can be no assurance that it will be able to secure such
 financing on a timely basis.  Until Tandycrafts completes its refinancing, its
 liquidity will continue to be limited.  Failure to obtain such refinancing
 would have a material adverse effect on Tandycrafts' liquidity, operations,
 financial condition and ability to operate as a going concern.  As a result of
 Tandycrafts' on-going efforts to obtain such refinancing, Tandycrafts has not
 filed its Annual Report on Form 10-K for fiscal year 2000 and its Quarterly
 Reports on Form 10-Q for the quarters ended September 30, 2000 and
 December 31, 2000.  Tandycrafts intends to file these reports as soon as other
 priorities permit.
     Tandycrafts, Inc. (www.tandycrafts.com ) is a maker and marketer of frames
 and wall decor.  Tandycrafts' products are sold nationwide through wholesale
 distribution channels, including mass merchandisers and specialty retailers.
     Statements in this news release which are not purely historical facts are
 forward-looking statements, including statements containing the words
 "believe," "estimate," "project," "expect" or similar expressions.  These
 statements are made pursuant to the safe harbor provisions of Section 21E of
 the Securities Exchange Act of 1934, as amended.  Although Tandycrafts
 believes that the expectations in the forward-looking statements are
 reasonable, Tandycrafts can give no assurance that such expectations or the
 forward-looking statements will prove to be correct.  Any forward-looking
 statement inherently involves risks and uncertainties that could cause actual
 results to differ materially from the forward-looking statements.  Factors
 that would cause or contribute to such differences include, but are not
 limited to, continued acceptance of Tandycrafts' products in the marketplace,
 successful implementation of its strategic plan, the ability to meet deadlines
 in Tandycrafts' current credit facility, the extension or refinancing of its
 existing bank facility and the restrictions any such extension or refinancing
 could place on Tandycrafts, the ability to obtain new financing from other
 financing sources, the ability to generate positive cash flow from operations
 and asset sales, availability of credit, competitive factors, dependence upon
 third-party vendors, and other risks detailed in Tandycrafts' filings with the
 Securities and Exchange Commission.  By making these forward-looking
 statements, Tandycrafts undertakes no obligation to update these statements
 for revisions or changes after the date of this release.  Readers are
 cautioned not to place undue reliance on forward-looking statements.  The
 inclusion of any statement in this release does not constitute an admission by
 Tandycrafts or any other person that the events or circumstances described in
 such statement are material.
 
 

SOURCE Tandycrafts, Inc.
    FORT WORTH, Texas, April 18 /PRNewswire/ -- Tandycrafts, Inc. (NYSE:   TAC)
 today announced that its lenders have extended its current $32.8 million
 credit facility subject to Tandycrafts fulfilling certain terms and
 conditions, including those terms summarized below.
     The Fort Worth-based maker and marketer of picture frames and wall decor
 said that, by May 25, 2001, Tandycrafts is required to deliver to its lenders
 binding commitment letters that will allow Tandycrafts to repay its current
 lenders in full by June 25, 2001.  In addition, upon the earlier of the
 closing of the financing or sale of Tandycrafts' Mexican operations or
 June 30, 2001, the amount of the current facility will be reduced by the
 greater of $5 million or the net proceeds generated from such financing or
 sale.  If Tandycrafts sells its headquarters' building in Fort Worth, the
 amount of the current facility would also be reduced by the net proceeds from
 such sale.  Tandycrafts also stated that it would reprice approximately
 508,104 warrants previously issued to its lenders from $1.18 per share to
 $0.35 per share.  Tandycrafts' lenders extended the termination date of the
 current credit facility from March 31, 2001, until June 30, 2002.
     Tandycrafts also announced that, on April 12, 2001, it submitted a plan to
 the New York Stock Exchange (NYSE) demonstrating how it plans to bring
 Tandycrafts into compliance with the NYSE continued listing standards within
 eighteen months.  There can be no assurance that the NYSE will accept
 Tandycrafts' plan.
     Tandycrafts and its investment banking firm intend to explore the
 strategic alternatives of Tandycrafts, including a possible sale, and to
 continue their efforts to refinance Tandycrafts' existing credit facility.
 However, there can be no assurance that it will be able to secure such
 financing on a timely basis.  Until Tandycrafts completes its refinancing, its
 liquidity will continue to be limited.  Failure to obtain such refinancing
 would have a material adverse effect on Tandycrafts' liquidity, operations,
 financial condition and ability to operate as a going concern.  As a result of
 Tandycrafts' on-going efforts to obtain such refinancing, Tandycrafts has not
 filed its Annual Report on Form 10-K for fiscal year 2000 and its Quarterly
 Reports on Form 10-Q for the quarters ended September 30, 2000 and
 December 31, 2000.  Tandycrafts intends to file these reports as soon as other
 priorities permit.
     Tandycrafts, Inc. (www.tandycrafts.com ) is a maker and marketer of frames
 and wall decor.  Tandycrafts' products are sold nationwide through wholesale
 distribution channels, including mass merchandisers and specialty retailers.
     Statements in this news release which are not purely historical facts are
 forward-looking statements, including statements containing the words
 "believe," "estimate," "project," "expect" or similar expressions.  These
 statements are made pursuant to the safe harbor provisions of Section 21E of
 the Securities Exchange Act of 1934, as amended.  Although Tandycrafts
 believes that the expectations in the forward-looking statements are
 reasonable, Tandycrafts can give no assurance that such expectations or the
 forward-looking statements will prove to be correct.  Any forward-looking
 statement inherently involves risks and uncertainties that could cause actual
 results to differ materially from the forward-looking statements.  Factors
 that would cause or contribute to such differences include, but are not
 limited to, continued acceptance of Tandycrafts' products in the marketplace,
 successful implementation of its strategic plan, the ability to meet deadlines
 in Tandycrafts' current credit facility, the extension or refinancing of its
 existing bank facility and the restrictions any such extension or refinancing
 could place on Tandycrafts, the ability to obtain new financing from other
 financing sources, the ability to generate positive cash flow from operations
 and asset sales, availability of credit, competitive factors, dependence upon
 third-party vendors, and other risks detailed in Tandycrafts' filings with the
 Securities and Exchange Commission.  By making these forward-looking
 statements, Tandycrafts undertakes no obligation to update these statements
 for revisions or changes after the date of this release.  Readers are
 cautioned not to place undue reliance on forward-looking statements.  The
 inclusion of any statement in this release does not constitute an admission by
 Tandycrafts or any other person that the events or circumstances described in
 such statement are material.
 
 SOURCE  Tandycrafts, Inc.