Helen of Troy enters $1.5 billion credit agreement in three parts

By Wendy Van Sickle

Columbus, Ohio, Feb. 20 – Helen of Troy Ltd. and Helen of Troy Texas Corp. entered into a credit agreement with Bank of America, NA on Feb. 15 that provides for a $1 billion revolver, a $250 million term loan and a $250 million delayed-draw term loan, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement replaces an agreement with BofA as agent that provided for a $1.25 billion revolver and an accordion feature for term loans of up to $300 million, of which $242 million was outstanding and scheduled to mature on March 13, 2025.

The new revolver has a $50 million sublimit for letters of credit.

All parts of the new credit agreement mature on Feb. 15, 2029. The delayed-draw loans may be borrowed in multiple drawdowns until Aug.15, 2025.

The term loans will be subject to quarterly amortization.

An accordion feature provides for the company to request to increase commitments by an amount that depends on its leverage ratio.

Borrowings bear interest at term SOFR plus a margin ranging from 100 basis points to 212.5 bps, depending on net leverage ratio.

Financial covenants include a maximum leverage ratio and a minimum interest coverage ratio.

BofA Securities, Inc., PNC Capital Markets, LLC, U.S. Bank NA and Wells Fargo Securities, LLC are the joint lead arrangers and bookrunners.

TD Bank, NA is the documentation agent.

Helen of Troy is a Hamilton, Bermuda-based designer, developer and marketer of brand-name housewares, health-care, home environment and personal-care consumer products.

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