BLOCK FINANCIAL CHANGES TO MORE STABLE SOURCE OF FUNDS
FOR IMMEDIATE RELEASE, Aug. 22, 2007
KANSAS CITY, Mo. — Block Financial Corporation
(“BFC”), a wholly-owned
subsidiary of H&R Block, Inc. (NYSE:HRB), has used
its committed working capital
lines of credit to provide a more stable source of
funds to supports its short-term
needs.
The company took this action because recent market
conditions have
negatively impacted the availability and term of commercial
paper for A2/P2
borrowers.
The lines of credit were accessed through two separate
draws of $200 million
and $850 million. The first draw of $200 million was
made on Aug. 16, and was repaid
with proceeds from the second draw of $850 million
on Aug. 20.
“In recent weeks, the credit markets have become
increasingly constrained and
unstable,” said William L. Trubeck, executive
vice president and chief financial officer.
“As a result, we have decided to substitute this
more stable source of funds to support
our short-term needs.”
The company expects to continue to use these working
capital lines until the
commercial paper stability and market pricing return
to normal levels.
As was disclosed in its recent 10-K, H&R Block
has $2 billion available to it in
committed, usable, revolving working capital facilities
that mature in 2010. The $2
billion exceeds the company's current short-term and
expected future borrowing
needs.
Forward Looking Statements
This release may contain forward-looking statements,
which are any statements that are not
historical facts. These forward-looking statements
are based upon the current expectations of
the company and there can be no assurance that such
expectations will prove to be correct.
Because forward-looking statements involve risks and
uncertainties and speak only as of the
date on which they are made, the company's actual
results could differ materially from these
statements. These risks and uncertainties relate to,
among other things, the company's pending
sale of Option One Mortgage Corp.; competitive factors;
regulatory capital requirements;
uncertainties pertaining to the commercial paper market;
litigation; and changes in market,
economic, political or regulatory conditions. Information
concerning these risks and
uncertainties is contained in Item 1A of the company's
2007 annual report on Form 10-K and
in other filings by the company with the Securities
and Exchange Commission.
For Further Information
Media Relations: Brian Levinson, (816) 854-4558,
brian.levinson@hrblock.com
Investor Relations: Scott Dudley, (816) 854-4505,
scott.dudley@hrblock.com