Crocs, Inc. entered into an amendment to its amended and restated credit agreement, expanding the existing $70M line of credit set to expire in December 2016 with a five year $100M revolving line of credit, which includes a 50 basis point reduction in interest rates over the existing line of credit.
The loan is provided by PNC Bank, N.A., a member of The PNC Financial Services Group, Inc. (NYSE:PNC). JPMorgan Chase Bank and Wells Fargo Bank, N.A. are also participants in the credit agreement.
“The amendment to our credit agreement allows us to take advantage of historically low interest rates and provides us with additional financial capability to execute our strategic and capital allocation plans,” stated Jeff Lasher, Crocs' CEO. “This improved credit agreement broadens our financial flexibility, increases our ability to repurchase shares and further bolsters our solid capital position.”
Borrowings under the revolving credit facility will bear interest at variable rates. Other changes to the credit agreement made by the amendment will be further described in the Company’s Form 8-K, to be filed with the Securities and Exchange Commission.