PVH refinances with €400M term loan, $1.5B revolving credit facility
What's the deal? PVHDealroom has a profile for this one. Try Dealroom → Corp., the parent of Calvin KleinDealroom has a profile for this one. Try Dealroom → and Tommy HilfigerDealroom has a profile for this one. Try Dealroom →, has entered a new credit agreement worth a €400 million euro-denominated term loan and a $1.5 billion multicurrency revolving credit facility.
Bank of AmericaDealroom has a profile for this one. Try Dealroom → serves as administrative agent, replacing BarclaysDealroom has a profile for this one. Try Dealroom → Bank from the company's previous deal. The agreement involves PVH Corp. and its Dutch subsidiary, PVH B.V.
On closing, PVH B.V. borrowed the full €400 million. It used the proceeds to repay all outstanding loans under its existing credit agreement, dated December 9, 2022.
That earlier facility and its commitments were terminated. Both new facilities mature on June 24, 2031.
Why now? The previous credit agreement, arranged with Barclays in 2022, had run its course. Refinancing lets PVH reset terms, extend its runway to 2031, and broaden currency flexibility.
The revolving facility covers loans in US dollars, euros, Canadian dollars, Japanese yen, pounds sterling, Swiss francs, and other agreed currencies.
What could go wrong? Borrowings carry variable interest, tied to benchmark rates such as term SOFR, EURIBOR, and SONIA, plus a margin. Rising rates would lift PVH's costs.
Starting with the quarter ending September 30, 2026, PVH must repay the term loan quarterly at 2.50% per annum of the principal. The balance falls due at maturity.
The deal also lets PVH add term facilities or raise revolving commitments by up to $1.5 billion more — but lenders aren't obliged to fund those.
The signal: The switch to Bank of America as administrative agent — replacing Barclays from the 2022 deal — underscores how established corporate lenders compete to anchor large multicurrency facilities for global apparel groups. For PVH, extending its runway to 2031 signals an effort to secure stability ahead of a period of variable-rate uncertainty across SOFR, EURIBOR, and SONIA benchmarks.
Image credit: Generated with Gemini
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