Nordstrom Announces Additional Liquidity and Flexibility Measures
Under the terms of the amendment, the revolving line of credit will be secured primarily by the Company’s inventory during periods when its leverage ratio (Adjusted Debt to EBITDAR) exceeds 4.0 times or its credit ratings drop below investment grade. During this period, minimum liquidity thresholds will be applied. Additional details of the amendment are included in the Company’s 8-K filing.
- Exited fiscal 2019 with
$850 million in cash, drew down$800 million on its revolving line of credit, and issued$600 million in secured debt financing - Suspended quarterly cash dividends and share repurchases
- Executing further reductions of more than
$500 million in operating expenses, capital expenditures and working capital, including ongoing efforts to realign inventory to sales trends
“The actions we are taking are to position ourselves best for our employees, customers and shareholders. This includes proactive steps to strengthen our financial flexibility, including our recent debt offering,” said
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