PVH refinances with €440.63 million term loan, $1.16 billion revolvers

By William Gullotti

Buffalo, N.Y., Dec. 9 – PVH Corp. signed new credit facilities due Dec. 9, 2027 with Barclays as administrative agent on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The new credit agreement includes a €440,625,000 term loan A facility, a $1.15 billion multicurrency revolver and a $50 million multicurrency revolver.

The term loan A requires quarterly repayments of principal equal to 2.5% of the principal amount, starting with the quarter ending March 31, 2023 and subject to certain customary adjustments, with the balance due at maturity.

Interest will be Euribor plus a margin, which was set at 125 basis points at closing.

The term loan A was fully drawn at closing, with proceeds used to repay in full the outstanding loans and other obligations tied to the company’s 2019-dated agreement. The prior agreement, also with Barclays as administrative agent, was terminated upon repayment.

The $1.15 billion multicurrency revolver, subject to certain conditions, may be expanded up to $1.5 billion via increased revolving commitments or term loan facilities. The revolver includes an A$50 million sublimit on Australian dollar-denominated revolving loans, a C$70 million sublimit on Canadian dollar-denominated revolving loans and a €250 million euro-equivalent sublimit for multicurrency revolving loans denominated in euros, yen, pounds sterling, Swiss francs or other agreed foreign currencies.

The smaller $50 million multicurrency revolver is available in U.S. dollar-denominated or Hong Kong dollar-denominated amounts.

Borrowings will bear interest at adjusted term SOFR, Euribor, Tibor, CDOR, AUD rate, Hibor, adjusted Sonia or adjusted Saron plus a margin, which was set at 112.5 bps at closing.

In each facility connected to the new agreement, the applicable margin will be subject to quarterly adjustment based upon the company’s net leverage ratio and/or public debt rating.

Borrowings under any of the aforementioned facilities may be prepaid at any time without penalty other than customary breakage costs.

The new agreement requires the company to maintain a maximum net leverage ratio, as well as other customary affirmative and negative covenants.

Cash on hand, together with proceeds from the new facilities, funded the refinancing.

Subsidiaries PVH Asia Ltd., PVH BV and PVH Brands Australia Pty Ltd. were named among the other subsidiary borrowers involved in the transactions, which PVH said would maintain its existing capital structure without material changes to its interest expense.

PVH is a New York-based apparel company.

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