Business Context and Reporting Period
Company: Burlington Stores, Inc.
Filing Type: Form 8-K (Current Report)
Date: July 29, 2016
Event: Entry into a Material Definitive Agreement (Amendment No. 5 to Credit Agreement).
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. It focuses exclusively on debt restructuring terms.
| Metric | Value |
|---|---|
| Outstanding Principal Amount | $1,117 million |
| Loan Facility Type | Term B-3 Loans replaced by Term B-4 Loans |
| Prime Rate Margin (New) | 1.75% (reduced from 2.25%) |
| LIBOR Rate Margin (New) | 2.75% (reduced from 3.25%) |
| LIBOR Floor (New) | 0.75% (reduced from 1.00%) |
Material Changes Versus Prior Period
- Interest Rate Reduction: The amendment reduced interest rate margins applicable to the term loan facility.
- Loan Restructuring: The company replaced $1,117 million in Term B-3 loans with an equivalent principal amount of Term B-4 loans.
- Maturity Date: The maturity date for the new Term B-4 loans remains the same as the previous Term B-3 loans.
Guidance, Outlook, and Risks
Management Commentary: The amendment was executed to reduce borrowing costs. JPMorgan Chase Bank, N.A., and Goldman Sachs Lending Partners LLC acted as joint lead arrangers and joint bookrunners.
Risks and Contingencies: The filing does not disclose new risks or contingencies beyond the standard terms of the credit agreement amendment. The full terms are incorporated by reference to Exhibit 10.1.
Investor Verification Checklist
- Verify the exact maturity date of the Term B-4 loans by reviewing the full Credit Agreement (Exhibit 10.1).
- Confirm the current applicable interest rate (Prime or LIBOR) to calculate the immediate impact of the margin reduction on interest expense.
- Review the full text of Amendment No. 5 for any covenants or prepayment penalties not summarized in this 8-K.