Key Highlights

• PVH’s Euro subsidiary drew a €400 million tranche on June 24 2026 to retire its 2022 credit line.

• A new $1.5 billion revolving facility supports loans in USD, EUR, CAD, JPY, GBP, CHF and other currencies.

• Quarterly repayments on the Euro term loan will be 2.50% of the original principal, starting Q3 2026.

PVH Corp. (NYSE: PVH) announced a fresh credit package on June 24 2026 that replaces its prior 2022 loan arrangement. The agreement introduces a euro‑denominated term loan and a broad‑based revolving credit line, giving the apparel maker added liquidity across several currencies.

New Credit Structure

The deal consists of a €400 million term loan (Euro TLA Facility) and a $1.5 billion multicurrency revolving credit facility. The revolving facility permits borrowing in U.S. Dollars, euros, Canadian dollars, Japanese yen, pounds sterling, Swiss francs, and other agreed currencies.

Repayment Mechanics

The Euro borrowing will be repaid in quarterly installments equal to 2.50% of the original €400 million principal. Payments begin with the quarter ending September 30 2026 and continue until the final maturity in June 2031. The revolving facility offers flexibility for letters of credit and swingline loans, each reducing the available balance.

Interest Margins

Floating rates on the revolving loans will carry an initial margin of 1.0%, while base‑rate loans bear a margin of 0%. The Euro term loan applies a 1.125% margin. All rates reference appropriate benchmarks such as SOFR for USD, EURIBOR for euros, SONIA for pounds, SARON for Swiss francs, TIBOR for yen, and either a Canadian base rate or CORRA for CAD.

Covenant and Rating Adjustments

The credit agreement imposes standard affirmative and negative covenants, including a maximum net leverage ratio. After the compliance certificate for the fiscal quarter ending around August 1 2027, margins may be adjusted based on the company’s leverage and public debt rating.

Strategic Impact

Proceeds from the €400 million tranche were used to fully retire obligations under the previous December 9 2022 credit agreement, effectively resetting PVH’s debt profile. The new facilities extend to June 2031, providing a ten‑year horizon for financing growth, supply chain initiatives, and working capital needs.

Flexibility for Future Borrowings

The agreement allows PVH to add additional term loans or increase revolving commitments, provided the total does not exceed $1.5 billion. Lenders are not obligated to fund any supplemental facilities, keeping expansion optional.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.