Nike Inc. was approved for a $1 billion credit agreement in borrowings. The agreement, made by Bank of America, gives Nike the opportunity to increase borrowings to $1.5 billion if needed. Read the details of the agreement:
Nike Inc. has amended its credit line on Nov. 1, according to a filing with the Securities & Exchange Commission. The credit agreement provides for up to approximately $1.0 billion of borrowings pursuant to a revolving credit facility with the option to increase borrowings to $1.5 billion upon request by the company.
The revolving credit facility provided in the credit agreement matures in October 2016, with a one year extension option prior to each of the second and third anniversary of the closing date, provided that in no event shall it extend beyond November 1, 2018. This facility replaces the $1.0 billion prior credit agreement entered into on December 1, 2006.
The agreement was made with Bank of America, N.A., as administrative agent, Citibank N.A., as syndication agent, Deutsche Bank Securities Inc., HSBC Bank USA, N.A., and JP Morgan Chase Bank, N.A., as co-documentation agents.
On Nov. 1, concurrently with the company’s entry into the credit agreement, Nike terminated the credit agreement dated Dec. 1, 2006, as amended, that provided for a $1.0 billion revolving credit facility with the banks, financial institutions and other lenders signatory thereto. No amounts were outstanding under this facility as of Nov. 1, 2011. The prior credit agreement would have expired in December 2012.