Bath & Body Works Inc. has recently amended and restated its senior secured asset-based revolving credit facility, commonly referred to as the ABL Facility. This updated agreement, which was executed on May 22, 2025, provides the company with a flexible borrowing arrangement that will mature five years from the closing date. Under the terms of the ABL Facility, Bath & Body Works can borrow and obtain letters of credit in both U.S. and Canadian dollars, based on a borrowing base linked to its credit card receivables, accounts receivable, inventory, and real property. The facility includes various covenants and stipulates a financial maintenance covenant requiring a minimum consolidated EBITDAR to consolidated fixed charges ratio of 1.00:1.00 under certain conditions. The interest rates are variable, tied to SOFR or alternative base rates, and are influenced by average daily excess availability. Additionally, the facility ensures that any obligations are secured by first priority liens on certain assets and second-priority liens on others, with guarantees provided by Bath & Body Works' subsidiaries. This strategic financial arrangement aims to enhance liquidity and support the company's operational needs.
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