8-KEarnings & ResultsMaterial AgreementsFinancial Events+1

Burlington Stores, Inc. 8-K Report, Material Agreement (Nov 21, 2017)

Filed November 21, 2017For Securities:BURL

Summary

This 8-K filing from Burlington Stores, Inc. (BURL) on November 21, 2017, primarily reports on two key developments. Firstly, the company's subsidiary, Burlington Coat Factory Warehouse Corporation, entered into an amendment to its existing credit agreement, specifically modifying its term loan facility. This amendment effectively replaces existing Term B-4 loans with new Term B-5 loans, leading to a reduction in interest rate margins and an extension of the maturity date. Secondly, the filing announces the company's operating results for the fiscal quarter ended October 28, 2017, through an accompanying press release. While the details of the financial results are not provided in the 8-K itself, the press release is furnished as an exhibit, allowing investors access to this important performance information. These events signal potential improvements in the company's cost of capital and provide timely updates on its financial performance.

Key Highlights

  • 1Burlington Stores' subsidiary amended its Term Loan Credit Agreement, extending the maturity date of its term loan facility from August 13, 2021, to November 17, 2024.
  • 2The amendment reduces the interest rate margins on the company's term loans, lowering them from 1.75% to 1.50% for prime rate loans and from 2.75% to 2.50% for LIBOR loans.
  • 3The company replaced its outstanding $1,117 million principal amount of Term B-4 Loans with an equivalent amount of new Term B-5 Loans.
  • 4JPMorgan Chase Bank, N.A. served as the administrative agent, with JPMorgan Chase Bank, N.A., Goldman Sachs Lending Partners LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Wells Fargo Securities LLC acting as joint lead arrangers and joint bookrunners.
  • 5The filing also includes a press release announcing Burlington Stores' operating results for the fiscal quarter ended October 28, 2017, providing investors with timely financial performance data.
  • 6The amendment to the credit agreement indicates proactive management of the company's debt structure and cost of capital.

Frequently Asked Questions

The amendment is expected to reduce Burlington Stores' interest expense due to lower interest rate margins on its term loans, and it extends the maturity date, providing more financial flexibility.

The maturity date was extended to November 17, 2024, through the amendment entered into on November 17, 2017.

The detailed financial results are available in the press release furnished as Exhibit 99.1 to this Current Report.

This replacement is the mechanism through which the interest rate reduction and maturity extension were implemented for the specified principal amount of debt.