QVC refinanced its senior secured credit facility, replacing its $2.65 billion bank credit facility with a new amended and restated multi-currency revolving credit facility which provides a line of credit of up to $3.65 billion.
According to the related 8-K filing, JPMorgan Chase Bank served as administrative agent on the transaction.
The new facility will mature on December 31, 2023 and includes a $400 million tranche for QVC’s subsidiary zulily as a co-borrower. The zulily tranche, interest pricing and maximum leverage ratio of 3.5x all remain unchanged from the previous facility.
Borrowings under the new facility will bear interest at either the alternate base rate or LIBOR at each borrower’s election in each case plus a margin. Borrowings that are alternate base rate loans will bear interest at a per annum rate equal to the base rate plus a margin that varies between 0.25% and 0.75% depending on each borrower’s combined ratio of consolidated total debt to consolidated EBITDA. Borrowings that are LIBOR loans will bear interest at a per annum rate equal to the applicable LIBOR plus a margin that varies between 1.25% and 1.75% depending on each company’s combined consolidated leverage ratio.
The new credit facility was secured by the stock of both QVC and zulily.
In connection with the refinancing, HSN and its subsidiaries, other than the Cornerstone Brands, became subsidiaries of QVC as part of an intercompany restructuring by parent company Qurate Retail.
Proceeds from the new facility were used to repay in full all outstanding debt under the $1 billion senior secured credit facility of HSN, with said credit facility subsequently terminated.