Restoration Hardware adds up to $80 million delayed-draw term facility

By Tali Rackner

Minneapolis, July 3 – Restoration Hardware, Inc., a wholly owned subsidiary of RH, entered into an eleventh amended and restated credit agreement on June 28 with Bank of America, NA as administrative agent and collateral agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement establishes an up to $80 million last-out, delayed-draw term loan facility.

Interest on the term loan is equal to Libor plus 250 basis points to 300 bps, depending on the average daily excess availability for the immediately preceding fiscal quarter. Initial interest is Libor plus 275 bps.

Under the credit agreement, Restoration Hardware also has a revolving line of credit available of up to $600 million, of which $10 million is available to the RH subsidiary Restoration Hardware Canada, Inc.

The credit agreement includes a $200 million accordion feature under which the revolving line of credit may be expanded to $800 million if and to the extent that the lenders revise their credit commitments to encompass a larger facility.

The credit agreement matures on the earlier of (a) June 28, 2022 and (b) 60 days prior to the maturity date of the company’s senior notes, unless the notes are refinanced, converted or otherwise defeased pursuant to a permitted refinancing and the maturity thereof is extended to a date that is not less than six months following the date set forth.

JPMorgan Chase Bank, NA and Wells Fargo Bank, NA acted as co-syndication agents on the credit agreement, with BMO Harris Bank, NA as documentation agent and Bank of America, J.P. Morgan Securities LLC and Wells Fargo Bank as joint lead arrangers and bookrunners.

Restoration Hardware is a Corte Madera, Calif.-based retailer of home furnishings, bath fixtures and bathware, functional and decorative hardware, gifts and related merchandise.

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