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Ralph Lauren enters into up to $500 million revolving credit facility
By Tali Rackner
Norfolk, Va., Feb. 18 – Ralph Lauren Corp. entered into a definitive amended and restated credit agreement for a five-year revolving credit facility on Feb. 11 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
The agreement provides for an up to $500 million senior revolving credit facility, including sub-facilities for letters of credit. The maximum amount of letters of credit outstanding at any one time is $50 million.
There is a $750 million accordion feature.
Loans may be made in euros, Hong Kong dollars, Japanese yen and certain other currencies, in addition to U.S. dollars.
Interest is Libor plus 75 basis points to 137.5 bps, based on Ralph Lauren’ debt ratings. The commitment fee ranges from 6 bps to 17.5 bps, and the letter-of-credit rate is 37.5 bps to 68.5 bps.
The agreement also contains certain covenants, including requiring the company’s consolidated leverage ratio at the last day of any period of four consecutive fiscal quarters to not exceed 3.75 times.
Proceeds may be used to finance working capital needs, capital expenditures, certain investments and general corporate purposes of the borrowers and their subsidiaries and for short-term funding of acquisitions.
The facility will mature in February 2020.
Bank of America, NA is the syndication agent, and Wells Fargo Bank, NA, HSBC Bank USA, NA and Deutsche Bank Securities Inc. are co-documentation agents on the deal.
Ralph Lauren is a New York-based company engaged in the design, marketing and distribution of lifestyle products.
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