Skechers increases revolver to $750 million, pushes maturity to 2026

By Wendy Van Sickle

Columbus, Ohio, Dec. 16 – Skechers U.S.A., Inc. amended its senior unsecured revolving credit facility on Wednesday to increase the facility size to $750 million, according to an 8-K filing with the Securities and Exchange Commission.

The maturity date was pushed out to Dec. 15, 2026 from Nov. 21, 2024.

Bank of America, NA is the administrative agent and a joint lead arranger along with HSBC Bank USA, NA and JPMorgan Chase Bank, NA.

The credit agreement may be increased by up to $250 million under certain conditions and provides for the issuance of letters of credit up to a maximum of $100 million and swingline loans up to a maximum of $25 million.

Borrowings bear interest at SOFR plus a margin ranging from 100 basis points to 150 bps, based on Skechers’ total adjusted net leverage ratio.

The commitment fee will range from 10 bps to 20 bps, depending on leverage ratio.

The total adjusted net leverage ratio may not exceed 3.75, except in the event of an acquisition, in which case the ratio may be increased to 4.25 for the quarter in which such acquisition occurs and for the three quarters thereafter.

Borrowings will be used for working capital, capital expenditures and other lawful corporate purposes.

Skechers is a Manhattan Beach, Calif.-based footwear company.

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