Kohl’s to repay $111 million bonds, reduce revolver in fourth quarter

By Devika Patel

Knoxville, Tenn., Nov. 21 – Kohl’s Corp. plans to further reduce its revolver borrowings this quarter and pay down $111 million of bond debt while rebuilding the company’s cash position, in an effort to get the leverage ratio to 2.5x.

Kohl’s, a Menomonee Falls, Wis.-based department store retailer, ended the quarter with $190 million of cash and cash equivalents.

“We remain committed to strengthening our balance sheet,” chief financial officer Jill Timm said on the company’s third quarter ended Oct. 28 earnings conference call on Tuesday.

“Our focus in the near term is to pay down our revolver borrowings and rebuild our cash position.

“Over the longer term, our objective is to manage to a 2.5x leverage level.

“Looking ahead in the fourth quarter, we will take another step to strengthen our balance sheet, retiring $111 million of bond maturities.

“In addition, we expect to significantly reduce our revolver borrowings,” she said.

At quarter-end, the company’s revolver balance was $625 million.

“During the third quarter, we utilized our revolver to fund seasonal working capital build ahead of the holiday season as expected,” Timm said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.