8-KMaterial AgreementsFinancial EventsExhibits & Filings

Burlington Stores, Inc. 8-K Report, Material Agreement (Jul 29, 2016)

Filed July 29, 2016For Securities:BURL

Summary

Burlington Stores, Inc. (BURL) filed an 8-K on July 29, 2016, to report an amendment to its existing credit agreement. Specifically, Amendment No. 5 to the Term Loan Credit Agreement, entered into by its subsidiary Burlington Coat Factory Warehouse Corporation, refinanced existing term B-3 loans with new term B-4 loans of the same principal amount. This amendment is significant for investors as it resulted in a reduction of the interest rate margins on the company's term loan facility. The interest rate margin for prime rate loans decreased from 2.25% to 1.75%, and for LIBOR loans, it decreased from 3.25% to 2.75%. Additionally, the LIBOR floor was reduced from 1.00% to 0.75%. These lower borrowing costs suggest improved financial flexibility and potentially increased profitability for Burlington Stores.

Key Highlights

  • 1Burlington Stores, Inc. (BURL) subsidiary refinanced its term loans through Amendment No. 5 to its Credit Agreement.
  • 2The existing $1,117 million in term B-3 loans were replaced with an equal principal amount of new term B-4 loans.
  • 3Interest rate margins on the term loan facility were reduced, indicating a lower cost of debt for the company.
  • 4Prime rate loan margins decreased from 2.25% to 1.75%.
  • 5LIBOR loan margins decreased from 3.25% to 2.75%.
  • 6The LIBOR floor for these loans was also reduced from 1.00% to 0.75%.
  • 7The new term B-4 loans maintain the same maturity date as the original term B-3 loans.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce an amendment to Burlington Stores, Inc.'s existing credit agreement, specifically Amendment No. 5, which involves refinancing their term loans and reducing interest rates.

The amendment significantly lowers Burlington Stores' debt costs by reducing the interest rate margins on their term loans. The margin for prime rate loans decreased by 0.50% and for LIBOR loans by 0.50%, with a reduction in the LIBOR floor as well.

No, the filing states that the new term B-4 loans have the same maturity date as the original term B-3 loans, indicating that the repayment timeline for this portion of the debt remains unchanged.

The amendment was entered into by Burlington Coat Factory Warehouse Corporation (a subsidiary), with JPMorgan Chase Bank, N.A. as the administrative agent and JPMorgan Chase Bank, N.A. and Goldman Sachs Lending Partners LLC acting as joint lead arrangers and joint bookrunners.