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Wells Fargo Ups Foot Locker Revolver to $600MM

July 17, 2020, 08:00 AM
Filed Under: Retail
Related: Wells Fargo Bank

Foot Locker, Inc. and certain of its domestic subsidiaries entered into an amended credit agreement with Wells Fargo Bank, National Association, serving as agent, letter of credit issuer, and swing line lender, which governs the Company’s secured asset-based revolving credit facility.

On July 14, 2020, the Company entered into an amendment (the “Amendment”) to the Credit Agreement (as so amended, the “Amended Credit Agreement”). The Amendment provides, among other things, that (1) the maturity date of the Revolving Credit Facility is extended to July 14, 2025, and (2) the aggregate commitments of the lenders under the Revolving Credit Facility are increased to $600,000,000. In accordance with the terms of the Amended Credit Agreement, the proceeds from the Revolving Credit Facility borrowings may be used for working capital, general corporate purposes, or other purposes permitted under the Revolving Credit Facility. Borrowings and letters of credit under the Amended Credit Agreement are not permitted to exceed a borrowing base, which is tied to the level of inventory and accounts receivable of the Company and the Guarantors.

The Amendment provides that the interest rate applicable to loans under the Amended Credit Agreement will be equal to, at the Company’s option, either a base rate, determined by reference to the federal funds rate, plus a margin of 0.75% to 1.25% per annum, or a Eurodollar rate, determined by reference to LIBOR, plus a margin of 1.75% to 2.25% per annum, in each case, depending on availability under the Amended Credit Agreement. In addition, the Company will pay a commitment fee of 0.50% per annum on the unused portion of the commitments under the Amended Credit Agreement.

On July 15, 2020, the Company repaid all revolving loans outstanding under the Amended Credit Agreement.

The Company’s obligations under the Amended Credit Agreement continue to be guaranteed by certain Guarantors and secured by a first priority lien on certain of the assets of the Company and certain Guarantors, including inventory, accounts receivable, cash deposits, and certain insurance proceeds.

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