Chewy gets $300 million five-year ABL revolver at Libor plus 125 bps

By Sarah Lizee

Olympia, Wash., June 18 – Chewy, Inc. entered on Tuesday into a new five-year senior secured asset-backed credit facility with Wells Fargo Bank, NA as administrative agent, providing for up to $300 million of non-amortizing revolving loans, according to an 8-K filing with the Securities and Exchange Commission.

Interest is Libor plus 125 basis points to 175 bps depending on average excess liquidity, and the commitment fee is 25 bps to 37.5 bps based on average daily use.

Interest is initially Libor plus 125 bps.

There is a $100 million accordion feature.

The revolver is subject to a borrowing base comprised of, among other things, inventory and sales receivables, subject to reserves.

The company is required to maintain a minimum fixed charge coverage ratio of 1 to 1 if specified excess availability under the facility is less than the greater of 10% of the maximum borrowing amount and $30 million for a period of time.

Wells Fargo Bank, NA and JPMorgan Chase Bank, NA are lead arrangers and joint bookrunners. JPMorgan is the syndication agent.

Chewy is an online retailer of pet food and other pet-related products owned by PetSmart and based in Dania Beach, Fla.

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