Foot Locker enters into up to $400 million five-year revolver

By Tali Rackner

Norfolk, Va., May 19 – Foot Locker, Inc. entered into a credit agreement on Thursday with Wells Fargo Bank, NA as administrative agent, letter-of-credit issuer and swingline lender, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement provides for an up to $400 million five-year asset-based revolving credit facility.

The facility may be increased by up to an additional $200 million.

Interest is equal to Libor plus 112.5 basis points to 137.5 bps, based on availability. The commitment fee is 20 bps.

Proceeds may be used to obtain letters of credit, finance the acquisition of working capital assets in the ordinary course of business and capital expenditures and for general corporate purposes, including for permitted acquisitions and investments.

Certain financial covenants require Foot Locker to maintain a minimum consolidated fixed-charge coverage ratio of 1 time at the end of each quarter.

The facility matures on May 18, 2021.

Bank of America, NA, JPMorgan Chase Bank, NA and U.S. Bank NA are co-syndication agents. Wells Fargo Bank, NA, Bank of America Merrill Lynch and U.S. Bank are joint lead arrangers and bookrunners.

The agreement replaces the prior asset-based revolving credit facility with Bank of America, NA.

Foot Locker is a New York-based specialty athletic retailer.

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