TJX obtains $500 million 364-day revolver at Libor plus 110-190 bps

By Rebecca Melvin

New York, Aug. 11 – TJX Cos., Inc. has entered into a $500 million 364-day revolving credit facility with U.S. Bank NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA is syndication agent of the agreement and Deutsche Bank Securities Inc., HSBC Bank USA, NA, JPMorgan Chase Bank, NA and Wells Fargo Bank NA are co-documentation agents.

Interest on borrowings under the facility will be at a rate of Libor plus 110 basis points to 190 bps, based on the credit ratings of the company’s long-term debt.

The terms of the facility require the company to maintain a quarterly-tested leverage ratio of funded debt to earnings before interest, taxes, depreciation and amortization and rentals of 5:1 for the test period ending May 1, 2021.

The company is also required to maintain minimum liquidity of at least $1.5 billion of unrestricted cash and cash equivalents and aggregate borrowing availability through April 30, 2021 and the company is required to have minimum EBITDAR of at least $650 million for the fiscal quarter ending Jan. 30, 2021.

The retailer of off-price apparel and home fashions is based in Framingham, Mass.

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