Carter’s subsidiary closes $750 million restated revolver due 2022

By Marisa Wong

Morgantown, W.Va., Aug. 31 – Carter’s, Inc.’s wholly owned subsidiary, William Carter Co., amended and restated the terms of its existing $500 million revolving credit facility under a fourth amended and restated credit agreement dated Aug. 25, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The restated credit agreement provides for a $750 million revolver due Aug. 25, 2022.

In addition to extending the maturity, the company increased the size of the U.S. dollar facility to $650 million, which includes a $100 million sub-limit for letters-of-credit and a $70 million swingline sub-limit.

The company also increased the size of the incremental facilities to an aggregate amount of up to $425 million, which includes $350 million with respect to the U.S. dollar revolver and $75 million with respect to the multicurrency revolver, plus an unlimited amount with respect to the U.S. dollar facility as long as the consolidated first-lien leverage ratio does not exceed 2.25 to 1.00 after giving effect to the incremental facility.

JPMorgan Chase Bank, NA, Merrill Lynch, Pierce, Fenner & Smith Inc. and BMO Capital Markets Corp. are the joint lead arrangers and bookrunners; JPMorgan Chase Bank is administrative agent; Bank of America, NA and Bank of Montreal are co-syndication agents; and Branch Banking & Trust Co., HSBC Securities (USA) Inc., Royal Bank of Canada, SunTrust Bank, U.S. Bank NA and Wells Fargo Bank, NA are co-documentation agents.

Borrowings bear interest at Libor or CDOR plus an applicable margin ranging from 112.5 basis points to 187.5 bps, depending on the company’s lease adjusted leverage ratio. The applicable margin is initially 137.5 bps.

The commitment fee ranges from 15 bps to 30 bps, also based on the lease adjusted leverage ratio, and is initially 20 bps.

The fourth amended and restated facility provides liquidity to be used for ongoing working capital purposes and for general corporate purposes.

Carter’s is an Atlanta-based branded marketer of apparel for babies and young children.

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