Nike enters new $2 billion revolver with $1 billion accordion

By Wendy Van Sickle

Columbus, Ohio, Aug. 20 – Nike, Inc. entered into a credit agreement on Aug. 16 for a $2 billion revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

There is a $535 million sublimit for swingline loans in euros and an option to expand the facility size by up to $1 billion.

At closing, Nike, Inc. was the only borrower under the revolver, but it may designate subsidiary borrowers from time to time.

BofA Securities, Inc. and Citibank, NA are the joint lead arrangers and joint bookrunners.

Bank of America, NA is the administrative agent. Citibank is the syndication agent. Deutsche Bank Securities Inc., HSBC Bank USA, NA and JPMorgan Chase Bank, NA are the co-documentation agents.

The facility matures on Aug. 16, 2024, with a one-year extension option prior to any anniversary of the closing date, provided that it not be extended beyond Aug. 16, 2026.

Interest is equal to Libor plus an applicable margin ranging from 34.5 basis points to 68 bps, depending on the company’s ratings.

The commitment fee ranges from 3 bps to 7 bps.

Upon entering into the new credit facility, the company terminated its credit facility dated Nov. 1, 2011, which provided for a $2 billion revolver, expandable to $2.75 billion.

No amounts were outstanding under the old facility as of Aug. 16.

The prior facility would have expired in August 2020.

The footwear company is based in Beaverton, Ore.

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