V.F. Corp. enters amendment to $2.25 billion revolving facility

By Wendy Van Sickle

Columbus, Ohio, April 26 – V.F. Corp. amended its $2.25 billion senior unsecured revolving credit facility on Thursday with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment changes the definition of “consolidated net worth” to include, for any fiscal quarter ending prior to the last day of the “covenant modification period,” which is defined as the date on which the company shall have delivered a written notice of its desire to terminate the covenant modification period and certified that it would be in compliance with the consolidated net indebtedness to consolidated net capitalization financial covenant as of the last day of the fiscal quarter most recently ended, addbacks for any non-cash impairment charges that have been disclosed by the company to the administrative agent and recognized by the company or any of its subsidiaries during the period starting with the fiscal quarter ended Sept. 30, 2022 and ending with the fiscal quarter ended on or about March 31, 2024 and the amount of the write-off of income tax receivable recognized by the company or its subsidiaries during the fiscal quarter ended on or about Sept. 30, 2023 as a result of Internal Revenue Service disputes that have been disclosed by the company to the administrative agent prior to the amendment effective date.

The amendment also changes the definition of “applicable rate” to include two additional ratings categories if the senior unsecured long-term indebtedness of the company is rated BBB- and Baa3 by S&P and Moody’s, respectively, or BB+ and Ba1 or lower by S&P and Moody’s, respectively.

Further, the negative covenants were amended by adding additional restrictions, with effect prior to the end of the covenant modification period, on certain agreements and other arrangements that prohibit or impose conditions on the ability of the company and its domestic subsidiaries to grant liens on their assets to secure or to provide guarantees in respect of the obligations under the agreement and certain dividends, distributions and payments with respect to any equity interests of the company.

The apparel company is based in Denver.

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