Columbia Sportswear enters new $500 million revolving credit facility

By Wendy Van Sickle

Columbus, Ohio, July 18 – Columbia Sportswear Co. entered into a new $500 million unsecured revolving credit facility on July 12, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings will bear interest at SOFR plus 100 basis points to 150 bps, and the commitment fee ranges from 10 bps to 20 bps, each based on funded debt ratio.

Under the terms of the revolver’s financial covenants, the company’s funded debt ratio may not exceed 3.75 to 1.

If the funded debt ratio is over 3.25 to 1, the company may not make certain payments, including dividends and share buybacks, in amounts over $200 million per year.

The revolver matures on July 12, 2027 and is available for working capital and general corporate purposes, including issuing letters of credit.

JPMorgan Chase Bank, NA is the administrative agent and a joint lead arranger and bookrunner along with Wells Fargo Securities, LLC and BofA Securities, Inc. Wells Fargo Bank, NA and Bank of America, NA are the syndication agents.

This facility replaces Columbia’s credit agreement dated Dec. 30, 2020 with JPMorgan as the administrative agent. All amounts under the previously existing facility have been paid.

The outerwear and sportswear company is based in Portland, Ore.

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