Restoration Hardware enters $600 million five-year restated revolver

By Marisa Wong

Los Angeles, July 30 – RH wholly owned subsidiary Restoration Hardware, Inc. entered into a 12th amended and restated credit agreement on July 29 for a $600 million revolving line of credit, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement amends and restates the company’s existing 11th amended and restated credit agreement dated June 28, 2017.

The restated credit agreement makes $10 million available to the RH subsidiary Restoration Hardware Canada, Inc. and includes a $300 million accordion feature that can expand the credit facility to up to $900 million.

The $300 million accordion, or a portion of that, may be added as a first-in, last-out term loan facility.

The borrowers may also conditionally request a European sub-facility under the revolving credit line or under the accordion feature for borrowing by some European subsidiaries.

The credit facility matures on July 29, 2026.

Borrowings bear interest at Libor plus 125 basis points to 175 bps, depending on average daily excess availability.

The credit agreement does not contain any significant financial ratio covenants or coverage ratio covenants other than a consolidated fixed-charge coverage ratio covenant. This covenant only applies in some limited circumstances, such as when unused availability under the credit agreement drops below the greater of $40 million or an amount based on 10% of the total borrowing availability at the time. The ratio is set at 1.0 and measured on a trailing 12-month basis.

BofA Securities, Inc., JPMorgan Chase Bank, NA and Wells Fargo Bank, NA are joint lead arrangers and joint bookrunners, with JPMorgan and Wells Fargo as co-syndication agents. Bank of America, NA is administrative agent and collateral agent. BMO Harris Bank, NA is documentation agent.

RH is an upscale home furnishings company based in Corte Madera, Calif.

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