GENESCO INC 8-K

What Happened

• Genesco Inc. announced on January 16, 2026 that it entered into a Fourth Amendment to its Fourth Amended and Restated Credit Agreement (with Bank of America, N.A. as agent and various lenders). The amendment extends the credit facility maturity date to January 16, 2031 and makes pricing and benchmark-rate updates for domestic and Canadian borrowings.
• The amendment does not change the borrowing base calculations for U.S. or Canadian revolving facilities, nor the collateral securing the obligations.

Key Details

• Amendment date: January 16, 2026; new maturity date: January 16, 2031.
• No change to borrowing base or collateral for domestic or Canadian revolving credit facilities.
• Covenant trigger: Company is not required to meet financial covenants unless Excess Availability falls below the greater of $22.5 million or 10% of the loan cap; if below that threshold, a minimum fixed charge coverage ratio of 1.0:1.0 applies.
• Rate/pricing changes: Canadian borrowings switch from CDOR to Term CORRA; a credit spread adjustment was removed, reducing the Term SOFR rate for U.S. borrowings; new pricing grid adds a Level III. Applicable Margins: Term SOFR/Term CORRA/alt currency loans range 1.25%–1.75%; domestic prime/U.S. index/Canadian prime loans range 0.25%–0.75%.

Why It Matters

• The amendment extends Genesco’s committed financing to 2031, providing multi-year liquidity visibility for investors. Adjustments to benchmark rates and removal of the credit spread adjustment may lower borrowing costs, while the revised pricing grid ties margins to Excess Availability (liquidity).
• Financial covenants are effectively dormant unless liquidity (Excess Availability) tightens below the stated threshold, at which point the company must meet a 1.0x fixed charge coverage ratio—an important operational constraint if borrowings rise and available capacity falls.