Borders shares spiked 41 percent in premarket trading Thursday after the bookseller reported a higher fourth-quarter profit and, perhaps more important, a crucial refinancing deal.
The company had delayed fourth-quarter results while it negotiated new financing. A $42.5 million loan was due on Thursday, payable to billionaire activist investor William Ackman's Pershing Square group.
Late Wednesday, the company said it repaid that loan and received a $700 million credit facility that matures in March 2014, replacing one that was due next year. Borders also closed on a $90 million term loan credit facility.
All of that news brightened prospects going forward for a company that has struggled with competition from online sales, but Borders also reported that its fourth-quarter profit doubled.
Still, revenues tumbled 13 percent and part of the reason profits are rising is that the company has been cutting costs aggressively.
Borders, which has more than 22,000 employees, said in January that it would lay off 164 staffers.
Shares rose 70 cents to $2.42 before the market opened. The stock has traded between 67 cents and $4.48 over the past 52 weeks.