Oxford Industries extends credit agreement to 2028, adjusts pricing

By Mary-Katherine Stinson

Lexington, Ky., March 7 – Oxford Industries, Inc. and subsidiary Tommy Bahama Group, Inc. on March 6 entered into a second amendment to their $325 million credit agreement with Truist Bank as administrative agent, extending the maturity date to March 6, 2028 from July 31, 2024, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also modifies the three-tier pricing grid dependent on average excess availability and provides for interest rate margins of 125 basis points, 150 bps or 175 bps above term SOFR plus 10 bps as a credit spread adjustment. The previous pricing grid provided for interest rate margins of 100 bps, 125 bps or 150 bps above Libor.

The unused line fee is 20 bps.

The amendment also modifies certain borrowing base provisions to increase the availability of the revolving loan and adjusts other provisions and restrictions to generally be more favorable and/or less restrictive to the company.

Proceeds from the senior secured, asset-based revolving credit facility are generally available to the company for working capital and general corporate purposes, as well as to fund acquisitions and investments.

After the closing of the second amendment, the company had borrowings of $143 million, outstanding letters of credit of $7 million and excess availability of $175 million under the agreement.

The joint lead arrangers and joint bookrunners are Truist Securities, Inc., JPMorgan Chase Bank, NA, Bank of America, NA and Huntington National Bank.

Oxford Industries is an Atlanta-based clothing retailer. Its labels include Tommy Bahama, Lilly Pulitzer, Southern Tide, Oxford Golf and Lanier Clothes.

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