QVC Announces Refinancing of Bank Credit Facility

Rhea-AI Summary

QVC, Inc. announced the refinancing of its senior secured credit facility with a new $3.25 billion multi-currency revolving facility on October 27, 2021. This new arrangement replaces the previous $2.95 billion credit facility and includes a reduced interest rate based on the consolidated debt-to-EBITDA ratio. The facility matures on October 27, 2026 and is secured by the equity of QVC and its wholly owned subsidiaries, including Zulily and Cornerstone Brands.

Positive

• Secured a new credit facility of $3.25 billion, increasing from the previous $2.95 billion.
• Interest rate reduced compared to the prior facility, based on improved debt-to-EBITDA ratios.

Negative

• None.

ENGLEWOOD, Colo.--(BUSINESS WIRE)-- QVC, Inc. (“QVC”) announced today the refinancing of its senior secured credit facility with a new amended and restated senior secured credit facility on October 27, 2021. The new senior secured credit facility is a multi-currency revolving facility, provides a line of credit of up to $3.25 billion and replaces QVC's existing $2.95 billion bank credit facility. QVC is a wholly owned subsidiary of Qurate Retail, Inc. (Nasdaq: QRTEA, QRTEB, QRTEP).

The interest rate pricing for the new senior secured credit facility was decreased from the interest rate pricing in QVC’s existing bank credit facility and is based on a pricing grid that varies depending on the combined ratio of consolidated total debt to consolidated EBITDA of the borrowers under the new senior secured credit facility. The maturity on the new senior secured credit facility is October 27, 2026. The multi-currency revolving facility may be borrowed by QVC (including QVC Global Corporate Holdings, LLC), Zulily, LLC (“Zulily”) and Cornerstone Brands, Inc. (“Cornerstone”), each a direct or indirect wholly owned subsidiary of Qurate Retail, Inc. The new senior secured credit facility is secured by the equity of QVC, Zulily and Cornerstone.

About Qurate Retail, Inc.

Qurate Retail, Inc. is a Fortune 500 company comprised of seven leading retail brands – QVC®, HSN®, Zulily®, Ballard Designs®, Frontgate®, Garnet Hill®, and Grandin Road® (collectively, “Qurate Retail GroupSM”). Globally, Qurate Retail Group is a world leader in video commerce, among the top 10 e-commerce retailers in North America (according to Digital Commerce 360), and a leader in mobile commerce and social commerce. The retailer reaches approximately 218 million homes worldwide via 14 television networks and reaches millions more via multiple streaming services, social pages, mobile apps, websites, print catalogs, and in-store destinations. Qurate Retail, Inc. also holds various minority interests and green energy investments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211028005327/en/

Qurate Retail, Inc.

Courtnee Chun, 720-875-5420

Source: Qurate Retail, Inc.

FAQ

What is the new credit facility amount for QVC as of October 27, 2021?

QVC has secured a new credit facility amounting to $3.25 billion.

When does the new senior secured credit facility for QVC mature?

The new senior secured credit facility matures on October 27, 2026.

What was the previous amount of QVC's credit facility before the refinancing?

The previous credit facility was $2.95 billion.

Which subsidiaries are secured under QVC's new credit facility?

The new credit facility is secured by the equity of QVC, Zulily, and Cornerstone Brands.

How does the interest rate of QVC's new credit facility compare to the old one?

The interest rate for the new credit facility is decreased compared to the existing facility.