Casual footwear brand Crocs repriced the $1.18 billion outstanding under its term loan B facility through a refinancing amendment. According to an 8K filed with the SEC, Citibank is the administrative agent for the refinancing amendment.
The refinancing amendment reduces the interest rate margins applicable to the $1.18 billion outstanding under the term loan b facility such that each term loan borrowing which is (1) an alternate base rate borrowing will bear interest at a rate per annum equal to the alternate base rate plus 2% (a decrease of 0.5%), and (2) a term benchmark borrowing will bear interest at a rate per annum equal to the adjusted term SOFR rate plus 3% (a decrease of 0.5%).
“I am very pleased with the outcome of this refinancing transaction. We successfully achieved a 0.5% reduction in our term loan b borrowing rate, with no change to our leverage, covenants or maturity date,” Anne Mehlman, executive vice president and CFO of Crocs, said. “The overwhelming market reception to this transaction is a testament to our strong credit profile and free cash flow generation. Since acquiring HEYDUDE in February 2022, we have repaid $850 million in debt and intend to methodically balance debt repayment and share repurchases as we approach our long-term net leverage target.”
