Deckers Outdoor Corp Amends Credit Facility, Increases Revolver to $500M

What Happened

• Deckers Outdoor Corporation filed an 8-K reporting a First Amendment to its Credit Agreement, effective August 27, 2026. The amendment increases the unsecured revolving credit commitments to $500 million and extends the maturity of the revolving loans to August 27, 2031.
• The amendment names Citibank, N.A. as administrative agent, with Citibank, HSBC Bank USA and Fifth Third Bank as joint lead arrangers/bookrunners. It also releases Deckers Benelux B.V. as a borrower under the agreement. Deckers said funds from the facility will be used for working capital and general corporate purposes. The company paid customary arrangement and commitment fees and reimbursed certain expenses in connection with the amendment.

Key Details

• Increase in revolving credit commitments to $500 million (no change to letter-of-credit or foreign-currency sublimits).
• New maturity date for the revolving facility: August 27, 2031 (with possible extensions by consenting lenders).
• Interest rate options include Term SOFR, Adjusted EURIBOR, Term CORRA, Daily Simple RFR or adjusted base rate plus a margin that ranges:
  • 1.00%–1.50% per annum for SOFR/EURIBOR/CORRA/Daily RFR-based loans; or
  • 0.00%–0.50% per annum for loans based on the adjusted base rate.
• Commitment fees on the unused portion were reduced to 0.10%–0.175% per annum (exact fee based on Deckers’ total net leverage ratio).

Why It Matters

• The amendment increases Deckers’ available liquidity and pushes the next major credit maturity out to 2031, reducing near-term refinancing pressure.
• Borrowing costs are tied to the company’s leverage (a pricing grid), so interest expense can vary with Deckers’ leverage levels; lower commitment fees modestly reduce the cost of holding unused capacity.
• The facility is unsecured and intended for general corporate and working capital uses; investors should view this as a financing flexibility and liquidity tool rather than a change to operating strategy.