Stifel Nicolaus Says Placement Will Help Interface

New York, NY, June 8, 2009--Stifel Nicolaus has lowered its earnings estimates for Interface after the carpet firm completed a private placement offering to for $150 million aggregate principal senior secured notes due 2013.

The firm's 2009 and 2010 estimates were revised from $0.19 and $0.35 to $0.17 and $0.32, respectively, reflecting higher interest expense of about $4 million annually.

The notes pay an 11 3/8% coupon and are priced to yield 12.5%. Proceeds from this issuance will fund the ongoing tender offer for $142 million of the 10.375% notes due 2010.

Stifel said it views the transactions favorably. While interest expense increases, the transactions have effectively extended the debt maturities from 2010 to 2013. The remaining bonds outstanding are due 2014.