lululemon increases revolver to $400 million, extends maturity to 2023

By Wendy Van Sickle

Columbus, Ohio, June 6 – lululemon athletica inc. entered into an amendment on Wednesday to its credit agreement dated Dec. 15, 2016 to increase the commitments of its unsecured revolving credit facility, extend its maturity and improve pricing, according to an 8-K filing with the Securities and Exchange Commission.

Specifically, commitments were increased to $400 million, with an increase of the sublimits for letters of credit and swing line loans to $50 million each. The amendment also allows the company to request additional commitments up to total commitments of $600 million from $400 million previously.

The maturity date was extended to June 6, 2023 from Dec. 15, 2021.

The applicable margin for Libor loans was reduced to a range of 100 basis points to 150 bps from a range of 100 bps to 175 bps. The commitment fee was cut to 10 bps to 20 bps from 12.5 bps to 20 bps. Both the commitment fee and the margin above Libor depend on average daily usage.

Royal Bank of Canada and Citibank, NA are the joint lead arrangers and bookrunners and the documentation agents. HSBC Bank Canada is the syndication agent. Bank of America, NA is the administrative agent.

Proceeds may be used for general corporate purposes.

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

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