May 7, 2020
Dublin, CA-based Ross Stores arranged $500 million in extra borrowing capacity to its potential sources of liquidity, and to provide additional financial flexibility due to uncertain market conditions arising from the impact of the COVID-19 pandemic. Security and Exchange Commission filings reveal the discount retailer secured a 364-day credit agreement administered by Bank of America that allows the company to borrow during the period with interest rates depending on its long-term debt credit rating.
In March, Ross Stores borrowed $800 million under its existing agreement to boost its cash balances as the pandemic started to take shape. The capital infusion is envisioned to give Ross some financial flexibility to weather the turbulent period.
A week before the shelter-in-place order was issued, Ross shared plans to open 100 stores in fiscal 2020, with roughly 75 stores branded as Ross Dress for Less outlets and 25 stores falling under the dd’s Discounts brand. The retailer has closed all stores since March 20, and furloughed most store associates in early April.
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