Foot Locker gets $175 million amended and restated revolver

By Sara Rosenberg

New York, May 21 - Foot Locker Inc. closed on a $175 million amended and restated three-year revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

JPMorgan and Bank of America acted as the joint lead arrangers and bookrunners on the deal, with Bank of America the administrative agent, JPMorgan the syndication agent and Wells Fargo the documentation agent.

Pricing on the revolver can range from Libor plus 130 basis points to 200 bps and the commitment fee can range from 20 bps to 50 bps, based on the fixed-charge coverage ratio.

The revolver provides for an incremental facility of up to $100 million.

Financial covenants include a fixed-charge coverage ratio of 1.25:1 for the 2008 fiscal year, 1.50:1 for the 2009 fiscal year and 1:75:1 for each year thereafter.

There's also a minimum liquidity/excess cash flow requirement that says that if at the end of any fiscal quarter minimum liquidity is less than $350 million, then excess cash flow for the four consecutive fiscal quarters ended on such date must be at least $25 million.

Under the revolver, the company can pay up to $105 million in dividends in any fiscal year, and can repurchase up to $50 million in stock unless the fixed-charge coverage ratio is at least 2.0:1.

In connection with closing on the revolver on May 16, the company repaid the $88 million that was outstanding on its term loan, which was scheduled to mature in May 2009.

Foot Locker is a New York-based retailer of athletic footwear and apparel.

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