1-800-FLOWERS.COM, Inc., a leading florist and gift shop has entered into a new, amended and restated credit agreement with a syndicate of banks and other financial institutions led by JPMorgan Chase Bank, N.A. The new credit facility is comprised entirely of a $200 million revolving line of credit that features a reduction in the interest rate the company will pay on any borrowings to LIBOR plus a range of 150 to 225 basis points, based on the company’s leverage ratio, down from an interest rate of LIBOR plus a range of 300 to 375 basis points under its previous credit agreement. All borrowings under the new credit facility are guaranteed by the material subsidiaries of the company and secured by assets and stock of its subsidiaries.

Jim McCann, CEO, said, “This new credit facility, with its very advantageous borrowing costs, reflects the strength of our business model, including the growing cash flows that enabled us to pay off more than $100 million in debt over the past several years, despite the challenging economic environment. As we have stated in our recent press releases, we expect to finish our current fiscal year at the end of June with a positive cash position on our balance sheet and zero debt outstanding. The strength of our balance sheet, and the increased flexibility inherent in our new credit line, provides us with significant opportunities to grow our business going forward and continue to build value for our shareholders.”