Wilksboro, NC, September 7—Lowe’s said Friday that it established a new $1 billion senior credit facility in July with 15 banking institutions.
The credit pact, which expires in July 2009, replaced an $800 million senior credit facility, the home improvement retailer said in its quarterly report filed with the Securities and Exchange Commission.
Lowe's said that new facility is available to support its $800 million commercial paper program and for short-term borrowings.
Borrowings are priced based on market conditions at the time of funding, the filing said.
The senior credit facility contains some covenants, including maintenance of a specific financial ratio. The company said it was in compliance with these covenants at July 30.
As of that date, no commercial paper was outstanding and there were no outstanding loans under the facility, the filing said.
Lowe's sells about 40,000 products, including plumbing, electrical and building supplies, hardware, home decor and garden products, major appliances, lumber, tools, paint and consumer electronics.
