Foot Locker Inc. said in a regulatory filing that it borrowed $330 million under its revolving credit facility. The retailer said the borrowings were made as a precautionary measure to increase its cash position and preserve financial flexibility in light of the uncertainty in the global markets resulting from the COVID-19 pandemic
Foot Locker said in the filing, “On March 18, 2020, the company provided notice to the lenders to borrow an aggregate principal amount of $330 million under the Revolving Credit Facility. Prior to such notice, there were no loan amounts outstanding under the Revolving Credit Facility, other than de minimis amounts used to support standby letters of credit.
“The company borrowed under the Revolving Credit Facility as a precautionary measure in order to increase its cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the COVID-19 pandemic. In accordance with the terms of the Revolving Credit Facility, the proceeds from the Revolving Credit Facility borrowings may be used for working capital, general corporate purposes or other purposes permitted under the Revolving Credit Facility.”
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