VF Corp. said as a result of the current unprecedented period of uncertainty, including the unknown duration and overall impact of the COVID-19 coronavirus outbreak, VF Corporation announced additional actions to preserve financial liquidity and flexibility in order to successfully manage its business operations.
Drawdown of Revolving Credit Facility
As previously disclosed, VF maintains a $2.25 billion senior unsecured revolving credit facility that expires in December 2023. In an abundance of caution and as a proactive, precautionary measure, VF elected to draw down $1 billion from its revolving credit facility. The drawdown strengthens VF’s cash position and effectively funds the company’s expected working capital requirements through the first half of fiscal 2021. After the drawdown, VF expects to have approximately $1.5 billion of cash on hand and approximately $1 billion remaining under the revolving credit facility.
VF also retains access to a commercial paper program which allows for borrowings up to $2.25 billion for short-term, seasonal working capital requirements and general corporate purposes.
Full-Year Fiscal 2020 Earnings Outlook Update
As a result of the disruption and uncertainty caused by the COVID-19 coronavirus outbreak, VF is withdrawing its adjusted fiscal 2020 outlook provided on January 23, 2020, and is not providing an updated outlook at this time. More information will be provided during the company’s fourth-quarter fiscal 2020 conference call in May 2020.
VF’s brands include Vans, The North Face, Timberland and Dickies.
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