Summary
Ross Stores, Inc. (ROST) has announced the entry into a new senior unsecured revolving Credit Agreement, referred to as the 2025 Credit Facility, effective June 27, 2025. This new facility provides up to $1.3 billion in borrowing capacity, with an option to increase it by an additional $700 million, subject to lender agreement. The facility replaces the Company's previous credit agreement and extends its maturity to June 2030, with options for further one-year extensions. This action signals continued financial flexibility and access to capital for Ross Stores. The terms of the 2025 Credit Facility are largely consistent with the prior agreement, maintaining the same borrowing capacity. Interest rates are based on Term SOFR or an alternate benchmark, plus a margin that varies with the Company's credit rating, ranging from 0.675% to 1.25% for Term SOFR loans. A commitment fee on unused portions is also applicable. The agreement includes customary covenants, such as a debt-to-EBITDAR ratio limit of 3.50 to 1.00, and restrictions on subsidiary indebtedness, asset sales, and liens. This refinancing ensures Ross Stores maintains robust liquidity and financial support for its ongoing operations and strategic initiatives.
Key Highlights
- 1Ross Stores, Inc. entered into a new $1.3 billion senior unsecured revolving Credit Agreement (2025 Credit Facility) effective June 27, 2025.
- 2The new facility replaces the previous $1.3 billion credit facility entered into in February 2022.
- 3The 2025 Credit Facility has a maturity date of June 2030, with options to extend for up to two additional one-year periods.
- 4The Company has the option to increase the credit facility size by an additional $700 million, subject to lender consent.
- 5Borrowing costs are tied to Term SOFR (or an alternative rate) plus a margin, varying based on the Company's long-term debt credit rating.
- 6Key financial covenants include a maximum Consolidated Adjusted Debt to Consolidated EBITDAR ratio of 3.50 to 1.00.
- 7No borrowings were outstanding under the previous facility at the time of termination and the new facility's effectiveness.