lululemon athletica closes new five-year $150 million revolver

By Wendy Van Sickle

Columbus, Ohio, Dec. 21 – lululemon athletica inc. entered into a five-year $150 million unsecured revolving credit facility on Dec. 15, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America Merrill Lynch and HSBC Bank Canada are the joint lead arrangers and bookrunners; HSBC Bank Canada is the syndication agent; and Bank of America, NA is the documentation agent.

Borrowings may be drawn in U.S. dollars, euros, Canadian dollars and other currencies, subject to lender approval.

There is a $35 million sublimit for letters of credit and a $25 million sublimit for swingline loans.

The company may request to increase the revolver by up to an additional $200 million.

Interest is Libor plus a margin ranging from 100 basis points to 175 bps, and the commitment fee ranges from 12.5 bps to 20 bps, both depending upon the company’s ratio of consolidated debt to EBITDA.

The company must maintain a maximum consolidated rent-adjusted leverage ratio of 3.5 times and a minimum ratio of consolidated EBITDAR to consolidated interest charges (plus rent) to of two times.

Proceeds may be used for general corporate purposes.

The athletic apparel manufacturer is based in Vancouver, B.C.

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