Hibbett ups credit line to $125 million, replaces Libor with BSBY

By Marisa Wong

Los Angeles, April 12 – Hibbett, Inc. executed on April 7 a first note modification agreement to its credit agreement dated July 9, 2021 with Regions Bank to increase the line of credit to $125 million from $100 million, according to an 8-K filing with the Securities and Exchange Commission.

The agreement still expires on July 9, 2026.

There were no origination fees paid by the company for the modification.

The annual commitment fee on the unused portion of the line of credit, between 15 basis points and 20 bps, depending on the amount of debt outstanding, remains unchanged.

The financial covenants also remain unchanged as follows: advance limitation of 55% of the net book value of the company’s inventory; a consolidated lease-adjusted leverage ratio comparing lease-adjusted funded debt to EBITDAR with a maximum of 3.5 times; and a consolidated fixed coverage charge ratio comparing EBITDAR to fixed charges and certain current liabilities with a minimum of 1.2 times.

In addition, Hibbett executed on April 7 a first amendment to the same Regions Bank agreement to replace Libor with the Bloomberg Short-Term Bank Yield index rate as the benchmark rate.

The amended agreement carries an interest rate of BSBY plus 100 basis points to 180 bps, depending on specified leverage levels.

Hibbett Sports is a Birmingham, Ala.-based athletic-inspired fashion retailer.

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