Deckers extends revolver by one year, doubles it to $400 million

By Angela McDaniels

Tacoma, Wash., Aug. 16 - Deckers Outdoor Corp. amended and restated the credit agreement for its secured revolving credit facility on Aug. 10, according to an 8-K filing with the Securities and Exchange Commission.

The restated credit agreement increases the revolver to $400 million from $200 million and the sublimit for letters of credit to $75 million from $50 million.

The revolver continues to have a $5 million sublimit for swingline loans and a $100 million accordion feature.

The maturity was extended to August 2017 from August 2016.

The initial interest rate is Libor plus 175 basis points, and the commitment fee is 25 bps. The margin over Libor can range from 150 bps to 225 bps, and the commitment fee can range from 20 bps to 35 bps. Both are based on the company's leverage ratio.

Before the restatement, the interest rate was Libor plus 125 bps to 150 bps, and the commitment fee was 20 bps to 30 bps.

Borrowings may be prepaid at any time, and the company has the right to permanently reduce or terminate the lenders' commitments.

The revolver is guaranteed by the company's domestic subsidiaries and secured by a first-priority security interest in substantially all of the assets of the company and the guarantors.

Borrowings may be used for working capital and general corporate purposes, including stock repurchases.

The financial covenants require the company to maintain a minimum asset coverage ratio of 1.1 times, and its consolidated leverage ratio cannot exceed 2.25 times.

JPMorgan Chase Bank, NA is the administrative agent. Comerica Bank and HSBC Bank USA, NA are the syndication agents. Bank of America, NA, Compass Bank, Fifth Third Bank and U.S. Bank NA are the documentation agents. J.P. Morgan Securities LLC and Comerica Bank were the lead arrangers, and JPMorgan acted as bookrunner.

The company entered into the original credit agreement on Aug. 30, 2011.

Deckers is a Goleta, Calif.-based footwear company.

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