American Eagle Outfitters gets $700 million five-year ABL revolver

By Marisa Wong

Los Angeles, June 28 – American Eagle Outfitters, Inc. obtained a new $700 million five-year senior secured asset-based revolving credit facility under an amendment and restatement agreement dated June 24, according to an 8-K filing with the Securities and Exchange Commission.

The maximum availability under the ABL credit facility for revolving loans in U.S. dollars is $700 million. The facility includes a $60 million sublimit for revolving loans incurred by Canadian borrower American Eagle Outfitters Canada Corp. and a $60 million sublimit for the issuance of letters of credit.

The credit agreement also permits the incurrence of an additional $150 million revolver on a first-in, last-out basis.

The ABL credit facility will mature on June 24, 2027.

Borrowings bear interest at adjusted SOFR+ 10 basis points CSA plus an applicable margin ranging from 112.5 bps to 137.5 bps based on average borrowing availability.

The company must also pay a commitment fee of 20 bps on the unused portion of the aggregate commitments.

In addition, the credit agreement includes as a financial covenant a springing fixed-charge coverage ratio that arises when availability falls below a specified threshold.

Proceeds will be used for general corporate purposes and working capital.

The agreement amends and restates the company’s amended and restated credit agreement dated Jan. 30, 2019.

PNC Bank, NA is administrative agent.

American Eagle Outfitters is a retail clothing chain based in Pittsburgh.

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