Summary by Futu AI
On March 8, 2024, Nike, Inc. entered into a new 364-Day Credit Agreement with Bank of America, N.A. as the administrative agent, alongside other financial institutions as lenders. This agreement provides Nike with a $1.0 billion unsecured revolving credit facility, which will be used for working capital and general corporate purposes, including the support of commercial paper issuance. The facility, which matures on March 7, 2025, allows for borrowing in multiple currencies and may be increased to $1.5 billion with lender consent. Nike also has the option to renew the facility for an additional year or convert outstanding amounts into a term loan. The interest rates for borrowings will be based on Term SOFR plus a margin or a base rate, with the margin varying according to Nike's public ratings. The agreement includes covenants that limit certain company actions and does not contain financial covenants. Concurrently, Nike terminated its previous 364-Day Credit Agreement dated March 10, 2023, which had similar terms and no outstanding borrowings as of the termination date.
