BJ’s Wholesale extends ABL credit agreement to 2023, trims pricing

By Sarah Lizee

Olympia, Wash., Aug. 17 – BJ’s Wholesale Club Holdings, Inc. and BJ’s Wholesale Club, Inc. entered into the first amendment on Friday to its amended and restated asset-based lending credit agreement with Wells Fargo Bank, NA as administrative agent to extend the maturity date to Aug. 17, 2023 from Feb. 3, 2022, according to an 8-K filing with the Securities and Exchange Commission.

The pricing grid was also amended to reduce the applicable margin so that revolver borrowings bear interest at Libor plus 125 basis points to 175 bps and term loan borrowings bear interest at Libor plus 200 bps to 250 bps, in each case depending on average daily availability.

There are 12.5 bps stepdowns at total net leverage of 3 to 1.

Until Feb. 1, 2019, revolving loans will bear interest at Libor plus 125 bps and term loans will bear interest at Libor plus 200 bps.

As previously reported, pricing on the company’s first-lien term loan with Nomura Corporate Funding Americas, LLC as administrative agent was reduced to Libor plus 300 bps from Libor plus 375 bps, with a 25 bps stepdown at first-lien net leverage of 3 to 1, revised from 4.25 to 1.

BJ’s is a Westborough, Mass.-based operator of warehouse clubs.

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