Williams-Sonoma, Inc. Enters into the Seventh Amended and Restated Credit Agreement
January 12, 2018 at 09:18 pm
Share
On January 8, 2018, Williams-Sonoma, Inc. entered into the Seventh Amended and Restated Credit Agreement with Bank of America, N.A., as administrative agent, letter of credit issuer and swingline lender, Wells Fargo Bank, National Association, as syndication agent, and the lenders party thereto, providing for a credit facility that amends and replaces the Company's Sixth Amended and Restated Credit Agreement, dated as of November 19, 2014, as amended. The new credit facility provides for a $500,000,000 unsecured revolving line of credit, which includes a $75,000,000 sublimit for multicurrency borrowings and a $75,000,000 sublimit for the issuance of standby and commercial letters of credit. The new credit facility also provides for a $300,000,000 unsecured term loan facility. The proceeds of the credit facility will be used to refinance the Company's indebtedness under the existing Sixth Amended and Restated Credit Agreement and to support working capital, capital expenditures, the issuance of standby and commercial letters of credit and other corporate purposes. The Company may, upon notice to the Agent, request to increase any existing term loan and/or the revolving line of credit by up to $250,000,000, to provide for a total aggregate commitment of $1,050,000,000. As of January 8, 2018, the Company had the $300,000,000 term loan outstanding under the credit facility. The Company may elect interest rates on its revolving borrowings calculated by reference to Bank of America's prime rate (or, if greater, the average rate on overnight federal funds plus one-half of 1% or a daily rate equal to one-month LIBOR plus 1%), plus a margin based on the Company's leverage ratio ranging from 0% to 0.775%, or LIBOR plus a margin based on the Company's leverage ratio ranging from 0.910% to 1.775%.
Williams-Sonoma, Inc. is an omni-channel specialty retailer for home products. Its brands include Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, and Mark and Graham are marketed through e-commerce Websites, direct-mail catalogs and retail stores. These brands are also part of the Company's loyalty and credit card program that offers members benefits across the Williams-Sonoma family of brands. Williams Sonoma products include everything for cooking, dining and entertaining, including cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture and a library of cookbooks. The brand also includes Williams Sonoma Home that offers home furnishings and decorative accessories. Pottery Barn is an omnichannel home furnishings retailer. It operates 518 stores, which include 480 stores in 40 states, Washington, D.C. and Puerto Rico, 19 stores in Canada, 17 stores in Australia and two stores in the United Kingdom.