Ralph Lauren Corporation and some of its foreign subsidiaries have entered into a definitive agreement for a major revolving credit facility under which the global fashion house can issue letters of credit (L/Cs).

The US$500 million facility features JPMorgan Chase as administrative agent, Bank of America as syndication agent and Wells Fargo, HSBC, ING and Deutsche Bank Securities as co-documentation agents. A syndicate of financial institutions and institutional lenders is also participating.

Use of funds

The facility may be used to finance working capital needs, capital expenditures, certain investments and general corporate purposes of the borrowers and their subsidiaries. The facility will be available for L/C issuance by one or more of the lenders.

L/C limit

Commercial L/Cs may be issued to finance purchases of goods by the company and its subsidiaries in the ordinary course of business.

The aggregate amount outstanding at any time with respect to L/Cs may not exceed US$50 million.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.