COLUMBIA SPORTSWEAR CO 8-K

What Happened
Columbia Sportswear Company announced on March 19, 2026 that it entered into a Credit Agreement with JPMorgan Chase Bank, N.A. as administrative agent and the syndicate of lenders for an unsecured revolving credit facility providing up to $500 million. The facility is available for working capital and general corporate purposes (including a letters-of-credit sublimit) and matures March 19, 2031.

Key Details

• Facility amount: up to $500 million in U.S. dollar borrowings; unsecured revolving credit facility.
• Lender/agent: JPMorgan Chase Bank, N.A., as administrative agent and lender.
• Maturity: March 19, 2031.
• Interest: at borrower’s option either (a) SOFR + applicable margin (1.00%–1.50% based on funded debt ratio) or (b) a defined base rate + applicable margin (0.00%–0.50% based on funded debt ratio).
• Financial covenant: funded debt ratio must not exceed 3.75 to 1.00; certain domestic cash and foreign cash (up to the greater of $175M and 50% of EBITDA) may be netted for covenant calculations.
• Restrictions: customary covenants limit additional indebtedness, liens, M&A and related-party transactions; payments (dividends/share buybacks) over $200M annually are restricted if funded debt ratio ≥ 3.25 to 1.00.
• Prepayment/Default: voluntary prepayments allowed (SOFR loans require lender compensation for prepayment loss); lenders may accelerate on an event of default.
• The full Credit Agreement is filed as Exhibit 10.1 to the 8-K.

Why It Matters
This facility provides Columbia with a sizable liquidity backstop (up to $500M) and a financing runway through 2031, which can support working capital, operations, and strategic actions. The interest rate will vary with market rates and the company’s leverage, so borrowing cost depends on SOFR/base rate and the funded debt ratio. Covenants and the specific restriction on large dividend/share repurchases if leverage is high could limit the company’s ability to return cash to shareholders or pursue additional leverage until the funded debt ratio improves. Investors should note the eased treatment of certain cash balances for covenant compliance (which can lower reported leverage) and review the filed credit agreement (Exhibit 10.1) for full terms.