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Pier 1 enters new credit facility

FORT WORTH, Texas -- Pier 1 Imports, Inc. has entered a new $325 million five-year secured credit facility.

The facility is secured by the company's merchandise inventory and major credit card receivables. It replaces Pier 1’s existing unsecured bank facilities, including a $125 million revolving credit facility, which would have expired in August 2006, a $120 million uncommitted letter of credit facility, and approximately $52 million of credit lines used to issue other special-purpose letters of credit.

The facility will be used for general corporate purposes and the company expects to continue funding its working capital requirements through cash flow from operations, bank facilities, and sales of proprietary credit card receivables.