Lowe's Adds $2B Revolver, $2B Term Loan; $5B Bridge Remains
Rhea-AI Filing Summary
Lowe's Companies, Inc. announced it will acquire all shares of ASP Flag Parent Holdings, Inc. for approximately $8.8 billion. To fund a portion of the purchase price and support its commercial paper program, the company entered on September 16, 2025 into a $2.0 billion 5-year unsecured revolving credit agreement and a $2.0 billion unsecured term loan facility that matures in three years. These commitments replaced corresponding amounts of a previously disclosed 364-day bridge facility, leaving up to $5.0 billion of bridge commitments still outstanding that the company expects to replace through capital markets transactions. The company also established a $1.0 billion 364-day unsecured revolving credit facility for general corporate purposes and executed an amendment removing the SOFR credit spread adjustment from an existing credit agreement.
Positive
- $4.0 billion of committed financing secured via a $2.0B 5-year revolver and a $2.0B term loan to fund part of the $8.8B acquisition
- $1.0 billion 364-day revolver established for general corporate purposes
- Amendment removed the SOFR credit spread adjustment from the existing credit agreement
Negative
- An aggregate of up to $5.0 billion in bridge facility commitments remain outstanding and have not yet been replaced
- Transaction involves $8.8 billion purchase price which requires substantial financing commitments
Insights
TL;DR: Lowe's secured $4.0B of committed financing and a $1.0B short-term facility to help fund an $8.8B acquisition; $5.0B of bridge commitments remain to be replaced.
The company executed a $2.0B five-year unsecured revolving credit agreement and a $2.0B unsecured term loan maturing in three years to finance part of the purchase price and support its commercial paper program. These facilities replaced corresponding bridge commitments described previously. In addition, Lowe's put in place a $1.0B 364-day revolver for general corporate purposes and amended its existing credit agreement to remove the SOFR credit spread adjustment. Material items for investors include the $8.8B acquisition and the remaining $5.0B of bridge commitments the company expects to replace via capital markets transactions.
TL;DR: The financing package mixes medium-term and short-term unsecured facilities totaling $5.0B in new commitments, with additional bridge commitments remaining.
Lowe's arranged a $2.0B unsecured 5-year revolver and a $2.0B unsecured term loan with a three-year tenor, both administered by Bank of America, N.A., and supported by multiple lenders and arrangers. A $1.0B 364-day revolver was also executed for working capital and general corporate use. The filing notes that these new commitments replaced portions of a previously disclosed 364-day bridge facility and that up to $5.0B in bridge commitments remain outstanding and are expected to be replaced through capital markets transactions subject to market conditions.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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| Item 1.01 | Entry into a Material Definitive Agreement |
In connection with the Stock Purchase Agreement, dated as of August 19, 2025, pursuant to which Lowe’s Companies, Inc. (the “Company”) will acquire all of the shares of stock of ASP Flag Parent Holdings, Inc., a Delaware corporation (the “Acquisition”), for aggregate consideration of approximately $8.8 billion (the “Purchase Price”), on September 16, 2025, the Company entered into (i) a Credit Agreement (the “5-Year Revolving Credit Agreement”) with certain lenders party thereto and Bank of America, N.A, as administrative processing agent, for a $2.0 billion unsecured revolving loan facility to replace its existing $2.0 billion unsecured revolving credit facility, dated as of December 14, 2021, that will mature on the fifth anniversary of the signing date thereof and will be available to the Company to finance a portion of the Purchase Price and to support the Company’s existing commercial paper program and (ii) a Term Loan Credit Agreement (the “Term Loan Credit Agreement”) with certain lenders party thereto and Bank of America, N.A, as administrative agent, for a $2.0 billion unsecured term loan facility that will mature on the third anniversary of the signing date thereof to finance a portion of the Purchase Price and other fees and expenses related thereto. The aggregate amount of the commitments under the 5-Year Revolving Credit Agreement and the Term Loan Credit Agreement have replaced a corresponding amount of the commitments in respect of the 364-day bridge loan credit facility in an aggregate amount of up to $4 billion previously described in the Company’s Current Report on Form 8-K filed on August 20, 2025, in accordance with the terms of the bridge facility commitment letter. As a result, an aggregate amount of up to $5 billion in bridge facility commitments remain. The Company expects to replace these remaining commitments through one or more capital markets transactions, subject to market conditions and other factors, prior to the closing of the Acquisition.
Also on September 16, 2025, the Company entered into (i) a 364-Day Revolving Credit Agreement (the “364-Day Revolving Credit Agreement”) with certain lenders party thereto and Bank of America, N.A., as administrative processing agent, for a $1.0 billion unsecured revolving credit facility that will mature on the 364th day following the signing date thereof to be used for general corporate purposes and (ii) Amendment No. 1 to Amended and Restated Credit Agreement (“Amendment No. 1” and, together with the 364-Day Revolving Credit Agreement, the 5-Year Revolving Credit Agreement, and the Term Loan Credit Agreement, each a “Credit Document” and collectively, the “Credit Documents”) with Bank of America, N.A., as administrative agent, swing line lender and a letter of credit issuer, and the other lenders party thereto. Amendment No. 1 amended that certain Amended and Restated Credit Agreement, dated as of September 1, 2023, by and among the Company, Bank of America, N.A., as administrative agent, swing line lender and a letter of credit issuer, U.S. Bank National Association and Wells Fargo Bank, National Association, syndication agents and letter of credit issuers, Citibank, N.A., Goldman Sachs Bank USA, JPMorgan Chase Bank, N.A. and Barclays Bank PLC, as co-documentation agents, and the other lenders party thereto, to, among other things, remove the term SOFR credit spread adjustment.
The foregoing description of the Credit Documents does not purport to be complete and is qualified in its entirety by reference to the full text of each Credit Document, as applicable, copies of which are filed as Exhibits 10.1, 10.2, 10.3, and 10.4 to this Report and are incorporated herein by reference.
Certain lender parties to the Credit Documents and certain of their respective affiliates have performed in the past, and may from time to time perform in the future, banking, investment banking and/or other advisory services for the Company and its affiliates for which they have received, and/or will receive, customary fees and expenses.
| Item 2.03 | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The disclosure required by this Item and included in Item 1.01 above is incorporated by reference into this Item 2.03.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
| 10.1 | Credit Agreement, dated as of September 16, 2025, by and among, among others, Lowe’s Companies, Inc., Bank of America, N.A., as administrative processing agent, co-administrative agent, swing line lender and letter of credit issuer, Wells Fargo Bank, National Association, as co-administrative agent and letter of credit issuer, U.S. Bank National Association, as syndication agent and L/C issuer, the co-documentation agents party thereto, the joint lead arrangers and joint bookrunners party thereto, and the lenders party thereto. | |
| 10.2 | Term Loan Credit Agreement, dated as of September 16, 2025, by and among, among others, Lowe’s Companies, Inc., Bank of America, N.A., as administrative agent, Goldman Sachs Bank USA, as syndication agent, the co-documentation agents party thereto, the joint lead arrangers and joint bookrunners party thereto, the lenders party thereto. | |
| 10.3 | 364-Day Revolving Credit Agreement, dated as of September 16, 2025, by and among, among others, Lowe’s Companies, Inc., Bank of America, N.A., as administrative processing agent and co-administrative agent, Wells Fargo Bank, National Association, as co-administrative agent, U.S. Bank National Association, as syndication agent, the co-documentation agents party thereto, the joint lead arrangers and joint bookrunners party thereto, and the lenders party thereto. | |
| 10.4 | Amendment No. 1 to Amended and Restated Credit Agreement, dated as of September 16, 2025, by and among Lowe’s Companies, Inc., Bank of America, N.A., as administrative agent, and the other lenders party thereto. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| LOWE’S COMPANIES, INC. | ||||||
| Date: September 19, 2025 | By: | /s/ Juliette W. Pryor | ||||
| Juliette W. Pryor | ||||||
| Executive Vice President, Chief Legal Officer and Corporate Secretary | ||||||
FAQ
What acquisition did Lowe's (LOW) announce?
What new credit facilities did Lowe's secure to finance the deal?
How much of the previously disclosed bridge financing remains outstanding?
Did Lowe's amend any existing credit agreements?
Who is the administrative agent on the new facilities?
When were the credit agreements signed?
