SOURCE: Rewards Network

August 11, 2008 11:13 ET

Rewards Network Inc. Amends Credit Facility to Permit Repurchase of the Company's 3.25% Convertible Subordinated Debentures and Increase the Limit to up to $40 Million

CHICAGO, IL--(Marketwire - August 11, 2008) - Rewards Network Inc. (NASDAQ: DINE), a leading provider of marketing services and frequent dining programs to the restaurant industry, today announced that it amended its senior secured revolving credit facility ("Facility") with RBS Business Capital ("RBS") on August 11, 2008 to allow up to $15 million of the Facility to be used to repurchase the Company's 3.25% Convertible Subordinated Debentures ("Debentures"), to increase the Facility to up to $40 million and to extend the term to August 11, 2011.

Under the Facility, RBS has committed to provide up to $25 million and has agreed to seek to obtain an additional commitment of $15 million from one or more other financial institutions.

Holders of the Debentures may require the Company to repurchase for cash all or part of their Debentures on October 15, 2008. As of June 30, 2008, the outstanding balance of the Debentures was $52.9 million. The Company expects to fund the repurchase of the Debentures with its cash reserves and borrowings under the Facility. Borrowings under the Facility to repurchase the Debentures or otherwise are subject to compliance with covenants, representations and warranties. The Company's cash reserves as of June 30, 2008 were $45.5 million.

"We are pleased with the terms of our amended facility with our lending partner, RBS Business Capital," said Chris Locke, CFO of Rewards Network. "This facility should give us the flexibility to repurchase the Debentures and to support our growth efforts over the next several years."

About Rewards Network

Rewards Network (NASDAQ: DINE), headquartered in Chicago, Illinois, operates the leading frequent dining programs in North America. Thousands of participating restaurants and other merchants benefit from the Company's extensive email, internet and print marketing efforts; member ratings, feedback and reporting; and access to capital. In conjunction with leading airline frequent flyer programs and other affinity organizations, Rewards Network provides millions of members with incentives to dine at participating restaurants, including airline miles, college savings rewards, reward program points, and Cashback Rewards(SM) savings. Additional details about Rewards Network can be found at or by calling 1-877-491-3463.

Safe Harbor Statement

Statements in this release that are not strictly historical are "forward-looking" statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectation or beliefs, and are subject to risks, trends and uncertainties. Actual results, performance or achievements may differ materially from those expressed or implied by the statements herein due to factors that include, but are not limited to, the following: (i) our inability to attract and retain merchants, (ii) our inability to obtain sufficient cash and refinance the repurchase of our convertible subordinated debentures, (iii) our dependence upon our relationships with payment card issuers, transaction processors, presenters and aggregators, (iv) changes to payment card association rules and practices, (v) economic changes, (vi) our susceptibility to restaurant credit risk and the risk that our allowance for losses related to restaurant credit risk in connection with dining credits may prove inadequate, (vii) our dependence on our relationships with airlines and other reward program partners for a significant number of members, (viii) the concentration of a significant amount of our rewards currency in one industry group, the airline industry, (ix) our inability to attract and retain active members, (x) changes in our programs that affect the rate of rewards, (xi) our inability to maintain an adequately-staffed sales force, (xii) our inability to maintain an appropriate balance between the number of members and the number of participating merchants in each market, (xiii) our minimum purchase obligations and performance requirements, (xiv) network interruptions, processing interruptions or processing errors, (xv) susceptibility to a changing regulatory environment, (xvi) increased operating costs or loss of members due to privacy concerns of our program partners, payment card processors and the public, (xvii) the failure of our security measures, (xviii) the loss of key personnel, (xix) increasing competition, and (xx) a shift toward Marketing Services Program that may cause revenues to decline. A more detailed description of the factors that, among others, should be considered in evaluating our outlook can be found in the company's annual report on Form 10-K for the year ended December 31, 2007 filed with the Securities and Exchange Commission. Our ability to borrow under the Facility to repurchase the Debentures or otherwise is subject to our compliance with covenants, representations and warranties in the Facility, and we cannot assure you that we will be in compliance with these covenants, representations and warranties or otherwise be permitted to borrow under the Facility at the time we wish to borrow under the Facility. We undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, changes to future results over time or otherwise, except as required by law.

Contact Information

    Christopher Locke
    Chief Financial Officer
    Rewards Network Inc.
    (312) 521-6741