Carter's Establishes $750 Million Credit Facility to Replace Existing Debt

Carter's Inc. (NYSE: CRI) announced that its subsidiary The William Carter Company entered into a new five-year senior secured asset-based revolving credit facility worth up to $750 million on November 17, 2025.

The facility replaces the company's existing secured revolving credit facility and will mature five years from the closing date. The arrangement includes a $750 million U.S. dollar revolving credit facility, with up to $100 million available in Canadian dollars, euros, pounds sterling, or other approved currencies.

The credit facility incorporates a $100 million sub-limit for letters of credit and a $50 million swing line sub-limit. Up to $40 million of letters of credit may be drawn in foreign currencies with lender approval.

Both The William Carter Company and its subsidiary The Genuine Canadian Corp. serve as borrowers under the facility. The arrangement allows borrowers to request additional U.S. dollar commitments up to $150 million plus any amount by which the borrowing base exceeds total commitments.

Interest rates are determined by an excess availability-based pricing grid, calculated as the applicable floating benchmark rate plus a credit spread adjustment and an additional 1.25% to 1.50% based on average daily excess availability.

Carter's and certain domestic subsidiaries unconditionally guarantee the facility. The obligations are secured by substantially all assets of Carter's, the borrowers, and subsidiary guarantors, including first-priority pledges of capital stock and security interests in tangible and intangible assets.

The facility contains various restrictive covenants and includes a springing financial covenant requiring a fixed charge coverage ratio of at least 1.00 to 1.00 when excess availability falls below specified thresholds.

As of November 17, 2025, the company estimates a borrowing base of approximately $799 million and availability of approximately $743 million under the new facility.