Kontoor Brands, Inc. (KTB): debt financing — Kontoor Brands enters $1.5B credit agreement to partly fund Helly Hansen acquisition

Kontoor Brands, Inc.

New facilities: $700M Tranche A-1 term loan ($340M funded at close, $360M delayed draw), $300M delayed draw Tranche A-2, and $500M revolver (undrawn at close).
Proceeds from delayed draws earmarked for portion of purchase price to acquire Helly Hansen from Canadian Tire Corporation, announced Feb 18, 2025.
Tranche A-1 and revolver mature April 8, 2030; Tranche A-2 matures April 7, 2028. Interest based on SOFR plus applicable margin.
Financial covenants: total leverage ratio ≤4.50x (step-up to 5.00x for acquisitions) and interest coverage ratio ≥3.00x.
Obligations guaranteed by certain domestic subsidiaries and secured by first-priority liens on substantially all assets of those guarantors.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Kontoor Brands, Inc. incurred revolving credit of $500.0 million revolving credit facility (the "New Revolving Credit Facility") with JPMorgan Chase Bank, N.A., as administrative agent at Applicable Margin plus, at the Company's option, either (i) a base rate determin maturing April 8, 2030.

Instrument: revolving credit
Principal: $500.0 million revolving credit facility (the "New Revolving Credit Facility")
Counterparty: JPMorgan Chase Bank, N.A., as administrative agent
Rate: Applicable Margin plus, at the Company's option, either (i) a base rate determin
Maturity: April 8, 2030
Event: incurrence

Exact text from the filing

The Second Amended and Restated Credit Agreement provides for (a) a $700.0 million term loan A facility (the "Tranche A-1 Facility"), $360,000,000 of which will be comprised of delayed draw term loans with the other $340,000,000 comprised of term loans made as of the Closing Date, (b) a $300,000,000 delayed draw term loan A facility (the "Tranche A-2 Facility") and (c) a $500.0 million revolving credit facility (the "New Revolving Credit Facility" and, together with the Tranche A-1 Facility and the Tranche A-2 Facility, the "New Credit Facilities").

View on SEC.gov

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Kontoor Brands, Inc. incurred credit facility of $300,000,000 delayed draw term loan A facility (the "Tranche A-2 Facility") with JPMorgan Chase Bank, N.A., as administrative agent at Applicable Margin plus, at the Company's option, either (i) a base rate determin maturing April 7, 2028.

Instrument: credit facility
Principal: $300,000,000 delayed draw term loan A facility (the "Tranche A-2 Facility")
Counterparty: JPMorgan Chase Bank, N.A., as administrative agent
Rate: Applicable Margin plus, at the Company's option, either (i) a base rate determin
Maturity: April 7, 2028
Event: incurrence

Exact text from the filing

The Second Amended and Restated Credit Agreement provides for (a) a $700.0 million term loan A facility (the "Tranche A-1 Facility"), $360,000,000 of which will be comprised of delayed draw term loans with the other $340,000,000 comprised of term loans made as of the Closing Date, (b) a $300,000,000 delayed draw term loan A facility (the "Tranche A-2 Facility") and (c) a $500.0 million revolving credit facility (the "New Revolving Credit Facility" and, together with the Tranche A-1 Facility and the Tranche A-2 Facility, the "New Credit Facilities").

View on SEC.gov

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Kontoor Brands, Inc. incurred credit facility of $700.0 million term loan A facility (the "Tranche A-1 Facility"), $360,000,000 of which will be comprised of delayed dra with JPMorgan Chase Bank, N.A., as administrative agent at Applicable Margin plus, at the Company's option, either (i) a base rate determin maturing April 8, 2030.

Instrument: credit facility
Principal: $700.0 million term loan A facility (the "Tranche A-1 Facility"), $360,000,000 of which will be comprised of delayed dra
Counterparty: JPMorgan Chase Bank, N.A., as administrative agent
Rate: Applicable Margin plus, at the Company's option, either (i) a base rate determin
Maturity: April 8, 2030
Event: incurrence

Exact text from the filing

The Second Amended and Restated Credit Agreement provides for (a) a $700.0 million term loan A facility (the "Tranche A-1 Facility"), $360,000,000 of which will be comprised of delayed draw term loans with the other $340,000,000 comprised of term loans made as of the Closing Date, (b) a $300,000,000 delayed draw term loan A facility (the "Tranche A-2 Facility") and (c) a $500.0 million revolving credit facility (the "New Revolving Credit Facility" and, together with the Tranche A-1 Facility and the Tranche A-2 Facility, the "New Credit Facilities").

View on SEC.gov

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Kontoor Brands, Inc. filing history →

Source: SEC EDGAR

accession 0001760965-25-000022

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