Summary
NIKE, Inc. has announced the establishment of two new unsecured revolving credit facilities, replacing prior agreements. The first is a $1 billion 364-day credit facility, maturing on March 6, 2026, designed for working capital and general corporate purposes. The second is a larger $2 billion five-year credit facility, maturing on March 7, 2030, also for working capital and general corporate needs. Both facilities offer flexibility in currency and potential for increased commitment size. The company also terminated its previous credit facilities concurrently with the execution of these new agreements. Notably, no amounts were outstanding on the terminated facilities.
Key Highlights
- 1NIKE established a new $1 billion 364-day unsecured revolving credit facility.
- 2NIKE established a new $2 billion five-year unsecured revolving credit facility.
- 3Both new credit facilities are available for working capital and general corporate purposes.
- 4The 364-day facility matures on March 6, 2026, and the five-year facility matures on March 7, 2030.
- 5Both facilities can be increased in size, with the 364-day facility up to $1.5 billion and the five-year facility up to $3 billion, subject to lender agreement.
- 6Previous credit agreements dated March 8, 2024 (364-day) and March 11, 2022 (five-year) were terminated concurrently.
- 7No amounts were outstanding under the terminated credit facilities prior to their termination.
Frequently Asked Questions
These credit facilities are established for NIKE's working capital and general corporate purposes, which can include supporting the issuance of commercial paper.
No, NIKE terminated its prior credit agreements concurrently with entering into the new ones. Importantly, there were no outstanding amounts under the previously existing facilities as of March 7, 2025.
The 364-day credit facility provides up to $1 billion in unsecured revolving credit, matures on March 6, 2026, and can potentially be increased to $1.5 billion. Interest rates are based on Term SOFR or a base rate plus an applicable margin, which varies based on NIKE's public ratings.
The five-year credit facility provides up to $2 billion in unsecured revolving credit, matures on March 7, 2030, and can potentially be increased to $3 billion. Similar to the 364-day facility, interest rates are based on Term SOFR or a base rate plus an applicable margin tied to credit ratings.