Ralph Lauren gets new $500 million five-year revolver

By Angela McDaniels

Tacoma, Wash., Aug. 15 – Ralph Lauren Corp. entered into a new $500 million five-year senior revolving credit facility on Monday, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase Bank NA and BofA Securities, Inc. are the bookrunners and lead arrangers. JPMorgan is the administrative agent. Bank of America, NA is the syndication agent. Wells Fargo Bank, NA, HSBC Bank USA, NA, ING Bank NV, Dublin Branch, and Deutsche Bank Securities Inc. are the co-documentation agents.

The interest rate is Libor plus a margin that ranges from 50 basis points to 100 bps depending on the company’s ratings. The commitment fee ranges from 4 bps to 10 bps.

The revolver has a $500 million accordion feature.

Loans may be made in dollars, euros, Hong Kong dollars, Japanese yen and certain other currencies.

The revolver has a $50 million sublimit for letters of credit.

The revolver may be used to finance working capital needs, capital expenditures, certain investments and general corporate purposes and for funding acquisitions.

The revolver is guaranteed by some direct and indirect domestic subsidiaries of the company.

Under the credit agreement, the company must meet on a quarterly basis a test based on the ratio of (a) consolidated debt and operating lease obligations to (b) consolidated EBITDA and operating lease expense.

The company’s existing revolver will terminate on the effective date of the new revolver.

Ralph Lauren is based in New York and makes apparel, footwear, accessories and home furnishings.

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