What is the primary purpose of this 8-K filing?

The primary purpose of this 8-K filing is to disclose NIKE, Inc.'s entry into a material definitive agreement, specifically a Credit Agreement for a new revolving credit facility of approximately $1 billion.

What is the amount and maturity of the new credit facility?

The new revolving credit facility provides NIKE with up to approximately $1 billion in borrowings. It matures in December 2011, with the possibility of extensions.

How does this credit facility benefit NIKE?

This facility significantly bolsters NIKE's financial flexibility by providing access to substantial capital. It can be used to fund ongoing operations, support growth initiatives, manage working capital, or for other general corporate purposes, thereby enhancing the company's financial resilience.

Who are the key financial institutions involved in this credit agreement?

Key financial institutions involved include Bank of America, N.A. as the Administrative Agent, Citicorp USA, Inc. as the Syndication Agent, and HSBC Bank USA, N.A., The Bank of Tokyo Mitsubishi UFG, Ltd., and Deutsche Bank Securities Inc. as Co-Documentation Agents, along with other named banks.

NKE 8-K: Material Agreements & Financial Events

Summary

This 8-K filing from NIKE, Inc. on December 5, 2006, reports the establishment of a significant new credit facility. On December 1, 2006, the company entered into a Credit Agreement for a revolving credit facility totaling approximately $1 billion. This facility is designed to provide NIKE with substantial financial flexibility and liquidity for its ongoing operations and strategic initiatives. The agreement includes provisions for potential extensions, demonstrating a commitment to maintaining access to capital over the medium term.

Key Highlights

1NIKE, Inc. secured a new revolving credit facility amounting to approximately $1 billion.
2The Credit Agreement was finalized on December 1, 2006.
3Bank of America, N.A. serves as the Administrative Agent for the facility.
4The credit facility matures in December 2011.
5The agreement includes a one-year extension option, exercisable twice, for a potential total extension of two years.
6This move enhances NIKE's financial flexibility and access to capital.

NIKE, Inc. 8-K Report, Material Agreement (Dec 6, 2006)

Summary

Key Highlights

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