UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Emerging Growth Company
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| Item 2.03. | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
As previously disclosed, on January 8, 2018, Williams-Sonoma, Inc. (the “Company”) entered into the Seventh Amended and Restated Credit Agreement (the “Credit Agreement”), which includes a credit facility that provides for a $500,000,000 unsecured revolving line of credit (the “Revolver”), the material terms of which are described in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on January 12, 2018, which description is incorporated herein by reference.
On March 23, 2020, the Company borrowed the entire available amount under the Revolver of $487.8 million, resulting in a total of $500.0 million that is currently outstanding under the Revolver (including $12.2 million in issued but undrawn standby letters of credit). The Company borrowed under the Revolver as a precautionary measure to increase its cash position and preserve maximum financial flexibility in light of current uncertainty in the global markets resulting from the COVID-19 outbreak.
The Revolver matures on January 8, 2023, at which time, all outstanding borrowings must be repaid and all outstanding letters of credit must be cash collateralized. The Company may elect interest rates and interest periods on its Revolver borrowings, calculated by reference to either (i) a base rate (which is defined in the Credit Agreement), plus a margin based on the Company’s leverage ratio ranging from 0% to 0.775%, or (ii) a one week, one month, two months, three months or six months LIBOR interest period plus a margin based on the Company’s leverage ratio ranging from 0.910% to 1.775%. With respect to this draw of $487.8 million under the Revolver, the Company has elected a six month LIBOR rate plus a 1.025% margin, for a total interest rate of 2.0045%.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| WILLIAMS-SONOMA, INC. | ||||||
| Date: March 23, 2020 |
By: |
/s/ Julie Whalen | ||||
| Julie Whalen | ||||||
| Chief Financial Officer |
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