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hhgregg Announces Successful Completion of Upsized Revolving Credit Facility

INDIANAPOLIS--(BUSINESS WIRE)-- hhgregg, Inc. (NYSE: HGG) ("hhgregg" or the "Company") today announced that its subsidiary, Gregg Appliances, Inc. ("Gregg Appliances"), successfully completed an Amended and Restated Loan and Security Agreement ("Revolving Credit Facility") which amends Gregg Appliances' existing revolving credit facility to increase the maximum borrowing capacity to $300 million from $125 million, subject to borrowing base availability. The amended Revolving Credit Facility also extends the facility's maturity date to March 29, 2016. In conjunction with the upsized Revolving Credit Facility, Gregg Appliances paid off the remaining term debt and retired the interest rate swap arrangement using approximately $90 million of excess cash. The Company expects to incur approximately $2.1 million of charges, or $0.03 per diluted share, during the fourth quarter of fiscal 2011 related to the write-off of deferred financing costs associated with the early extinguishment of debt and charges related to the settlement of the interest rate swap arrangement. Wells Fargo Bank, National Association will serve as administrative agent and collateral agent, Wells Fargo Capital Finance, LLC and J.P. Morgan Securities LLC are acting as joint lead arrangers and joint bookrunners, J.P. Morgan Chase Bank, N.A. as syndication agent, and Keybank N.A., Regions Bank and Suntrust Bank as co-documentation agents.

The amended Revolving Credit Facility increased the Company's maximum borrowing capacity under the facility to $300 million, extended the term of the facility to 2016, provided additional operating flexibility and provided for a pricing grid with LIBOR spreads of 200 to 250 basis points, based on excess availability levels. The Revolving Credit Facility was undrawn at close.

Jeremy Aguilar, Chief Financial Officer of the Company, stated, "We are very pleased to have been able to capitalize on the favorable financing market and the growth of the Company to opportunistically secure a larger Revolving Credit Facility and eliminate all outstanding term debt. This facility further enhances hhgregg's strong liquidity position, extends maturity to 2016 and provides greater operating and financial flexibility for the Company as it continues executing its growth plan. This refinancing provides hhgregg with the appropriate capital structure and liquidity position as it moves closer to becoming a national retailer."

About hhgregg

hhgregg is a specialty retailer of consumer electronics, home appliances and related services operating under the name hhgregg™. hhgregg currently operates 173 stores in Alabama, Delaware, Florida, Georgia, Indiana, Kentucky, Maryland, Mississippi, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee and Virginia.

Safe harbor statement

The following is a Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This press release includes forward-looking statements. These statements may be identified by the use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "should," or "will," or the negative thereof or other variations thereon or comparable terminology. In particular, statements about the expectations, beliefs, plans, objectives, assumptions or future events or performance of hhgregg, Inc. are forward-looking statements.

hhgregg has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While hhgregg believes these expectations, assumptions, estimates and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond its control. These and other important factors may cause hhgregg's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Some of the key factors that could cause actual results to differ from hhgregg's expectations are: the effect of general and regional economic and employment conditions on its net sales; impact of average selling prices on net sales; competition in existing, adjacent and new metropolitan markets; changes in consumer preferences; its ability to effectively manage and monitor its operations, costs and service quality; its reliance on a small number of suppliers; rapid inflation or deflation in core product prices; the failure of manufacturers to introduce new products and technologies; customer acceptance of new technology; its dependence on the Company's key management personnel and its ability to attract and retain qualified sales personnel; its ability to negotiate with its suppliers to provide product on a timely basis at competitive prices; the identification and acquisition of suitable sites for its stores and the negotiation of acceptable leases for those sites; fluctuation in seasonal demand; its ability to maintain its rate of growth and penetrate new geographic areas; its ability to locate suitable new store sites; its ability to obtain additional financing and maintain its credit facilities; its ability to maintain and upgrade its information technology systems; the effect of a disruption at hhgregg's central distribution centers; changes in cost for advertising; and changes in legal and/or trade regulations, currency fluctuations and prevailing interest rates.

Other factors that could cause actual results to differ from those implied by the forward-looking statements in this press release are more fully described in the "Risk Factors" sections in hhgregg's Annual Report on Form 10-K filed with the Securities Exchange Commission on May 27, 2010 and hhgregg's Form 10-Q filed with the Securities Exchange Commission on February 8, 2011. Given these risks and uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. hhgregg does not undertake, and specifically declines, any obligation to update any of these statements or to publicly announce the results of any revisions to any of these statements to reflect future events or developments.

hhgregg, Inc.
Andy Giesler, Vice President of Finance, 317-848-8710
investorrelations@hhgregg.com

Source: hhgregg, Inc.

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