VF Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

SHORT-TERM BORROWINGS AND LONG-TERM DEBT

SHORT-TERM BORROWINGS AND LONG-TERM DEBT

9 Months Ended

Dec. 26, 2020

SHORT-TERM BORROWINGS AND LONG-TERM DEBT

Revolving Credit Facility

In April 2020, VF entered into Amendment No. 1 to its $2.25 billion senior unsecured revolving line of credit (the "Global Credit Facility") (the “Amendment”). The Amendment provides for (i) an increase in VF’s consolidated indebtedness to consolidated capitalization ratio financial covenant to 0.70 to 1.00 (from 0.60 to 1.00) through the last day of the fiscal quarter ending March 31, 2022, (ii) calculation of consolidated indebtedness (and, thereby consolidated capitalization) net of unrestricted cash of VF and its subsidiaries and (iii) testing of such financial covenant solely as of the last day of each fiscal quarter during such period. In addition, the Amendment requires VF and its subsidiaries to maintain minimum liquidity in the form of unrestricted cash and unused financing commitments of not

less than $750.0 million at all times during such period. As of December 2020, VF was in compliance with all covenants.

Short-term Borrowings

VF has a commercial paper program that allows for borrowings of up to $2.25 billion to the extent that it has borrowing capacity under the Global Credit Facility. Commercial paper borrowings as of December 2020 were $286.0 million. VF also has $71.2 million of international lines of credit with various banks, which are uncommitted and may be terminated at any time by either VF or the banks. Total outstanding balances under these arrangements were $13.7 million at December 2020.

Senior Notes Issuance

In April 2020, VF issued senior unsecured notes, as outlined in the table below:


(Dollars in thousands)
Scheduled Maturity	Aggregate Principal		Effective Annual Interest Rate		Interest Payments
2.050% notes, due 2022	$	1,000,000	2.277	%	Semiannually
2.400% notes, due 2025	750,000		2.603	%	Semiannually
2.800% notes, due 2027	500,000		2.953	%	Semiannually
2.950% notes, due 2030	750,000		3.071	%	Semiannually
Total Issuance	$	3,000,000

VF used a portion of the net proceeds from this offering to repay borrowings under its Global Credit Facility. The aggregate outstanding balance of these notes was $2.98 billion at December 2020, which was net of unamortized original issue discount and debt issuance costs.