COLUMBUS, Ohio, Sept. 22, 2021 /PRNewswire/ -- Big Lots,
Inc. (the "Company") announced today that on September 22, 2021 it successfully amended
its 2018 $700 million five-year
unsecured revolving credit facility. The amendment provides more
favorable pricing, expands the types of permitted financing
arrangements, and provides more flexibility to support the
company's future capital allocation priorities.
The amended facility consists of a $600
million senior unsecured revolving credit facility, with an
optional $300 million incremental
uncommitted term loan or additional revolving credit facility.
Interest rates and fees are determined on a tiered pricing schedule
based on the more favorable of the Company's leverage ratio or, in
the event that the Company's indebtedness becomes rated by Standard
& Poor's and/or Moody's, its debt rating.
"As we continue to execute our Operation North Star strategy,
and accelerate the company's growth trajectory, we are pleased to
have entered into this amended credit facility," said Jonathan Ramsden, EVP, Chief Financial and
Administrative Officer. "The Company's strong cash flow and
earnings performance have allowed us to pursue a financing
arrangement that is more suited to our current liquidity needs,
while also providing flexibility for long term growth, in
particular with regard to our goals of materially growing our store
count and investing in our customer experience. We are highly
appreciative of the tremendous support we have received from the
bank group, led by PNC Bank, Wells Fargo Bank, US Bank, and Truist
Bank, in putting this new facility in place."
Prior to the amendment, the Company's interest rate was LIBOR +
1.75% with a commitment fee of 25 bps. At closing, the Company's
interest rate was reduced to LIBOR + 1.375% with a commitment fee
of 15 bps. The Company anticipates that it will save a minimum of
$300,000 in interest and fees through
the end of its fiscal year and at least $850,000 on an annualized basis.
The amended leverage ratio fluctuates on a quarterly basis to
account for seasonal inventory builds, and ranges from 3.25 to
3.75. Prior to the amendment, the leverage ratio ranged from 3.0 to
3.5. The minimum fixed coverage ratio is unchanged at 1.5.
The amendment extends the term of the revolver until
September 22, 2026, with two one-year
optional extensions. The amendment also contains a $75 million environmental, social and governance
("ESG") sublimit, which allows the Company, subject to the banks'
approval, to receive favorable pricing and fee adjustments for its
performance against future ESG performance metrics.
As of September 22, 2021, the
Company had utilized $7
million in letters of credit and had no borrowings outstanding
under the 2018 credit facility.
Additional information regarding the Second Amended and Restated
Credit Agreement can be found on a Form 8-K to be filed with the
Securities and Exchange Commission.
About Big Lots, Inc.
Headquartered in Columbus,
Ohio, Big Lots, Inc. (NYSE: BIG) is a neighborhood discount
retailer operating 1,422 stores in 47 states, as well as a
best-in-class ecommerce platform with expanded capabilities via
BOPIS, curbside pickup, Instacart and Big Lots NOW with same day
delivery. The company's product assortment is focused on home
essentials: Furniture, Seasonal, Soft Home, Food, Consumables, and
Hard Home. A Fortune 500 company and ranked #1 on
Total Retail's 2020 Top 100 Omnichannel Retailers
list, Big Lots' mission is to help people Live BIG and Save
Lots. The company strives to be the BIG difference for a better
life by delivering unmatched value to customers with the ultimate
bargain and treasure hunt shopping experience, being a "best place
to work" culture for associates, rewarding shareholders with
consistent growth and top-tier returns, and doing good in local
communities. For more information about the company, visit
www.biglots.com.
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements in this release are forward-looking
statements within the meaning of the Private Securities
Litigation Reform Act of 1995, and such statements are
intended to qualify for the protection of the safe harbor provided
by the Act. The words "anticipate," "estimate," "approximate,"
"expect," "objective," "goal," "project," "intend," "plan,"
"believe," "will," "should," "may," "target," "forecast,"
"guidance," "outlook" and similar expressions generally identify
forward-looking statements. Similarly, descriptions of objectives,
strategies, plans, goals or targets are also forward-looking
statements. Forward-looking statements relate to the expectations
of management as to future occurrences and trends, including
statements expressing optimism or pessimism about future operating
results or events and projected sales, earnings, capital
expenditures and business strategy. Forward-looking statements are
based upon a number of assumptions concerning future conditions
that may ultimately prove to be inaccurate. Forward-looking
statements are and will be based upon management's then-current
views and assumptions regarding future events and operating
performance and are applicable only as of the dates of such
statements. Although the company believes the expectations
expressed in forward-looking statements are based on reasonable
assumptions within the bounds of knowledge, forward-looking
statements, by their nature, involve risks, uncertainties and other
factors, any one or a combination of which could materially affect
business, financial condition, results of operations or
liquidity.
Forward-looking statements that the company makes herein and in
other reports and releases are not guarantees of future performance
and actual results may differ materially from those discussed in
such forward-looking statements as a result of various factors,
including, but not limited to, developments related to the COVID-19
coronavirus pandemic, current economic and credit conditions, the
cost of goods, the inability to successfully execute strategic
initiatives, competitive pressures, economic pressures on customers
and the company, the availability of brand name closeout
merchandise, trade restrictions, freight costs, the
risks discussed in the Risk Factors section of the company's
most recent Annual Report on Form 10-K, and other factors discussed
from time to time in other filings with the SEC, including
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
This release should be read in conjunction with such filings, and
you should consider all of these risks, uncertainties and other
factors carefully in evaluating forward-looking statements.
You are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date thereof. The company
undertakes no obligation to publicly update forward-looking
statements, whether as a result of new information, future events
or otherwise. You are advised, however, to consult any further
disclosures the company makes on related subjects in public
announcements and SEC filings.
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SOURCE Big Lots, Inc.