Floor & Decor Holdings, Inc. 8-K

What Happened
Floor & Decor Holdings, Inc. announced that its subsidiary, Floor and Decor Outlets of America, Inc., refinanced its debt on June 24, 2026 by entering a new $200.0 million senior secured term loan (the New Term Loan Facility) and a new $800.0 million senior secured asset‑based revolving credit facility (the New ABL Facility). Goldman Sachs Bank USA is administrative and collateral agent for the term loan; Bank of America, N.A. is administrative and collateral agent for the ABL. The new term loan matures June 24, 2033 (7 years) and the ABL matures June 24, 2031.

Key Details

• New Term Loan Facility: $200.0 million principal; maturity June 24, 2033; interest at Adjusted Term SOFR + 2.00% or Alternate Base Rate + 1.00%; 1.00% prepayment premium only for a repricing within 6 months. Secured by substantially all F&D fixed assets and intellectual property; guaranteed by U.S. subsidiaries.
• New ABL Facility: $800.0 million revolver (same as prior commitment); maturity June 24, 2031; margins: Term/Daily SOFR & standby LOC fees +1.125%, Base Rate +0.125%, commercial LOC fees 0.75%; accordion to add up to $200 million. Secured by substantially all current assets (inventory, A/R); guaranteed by U.S. subsidiaries.
• Incremental capacity: Term loan includes an incremental feature allowing increases up to the greater of $530 million or 100% of Consolidated EBITDA (plus additional amounts subject to leverage tests); ABL includes $200M accordion.
• Covenants and security: Both facilities include customary covenants (limits on additional debt, dividends, asset sales, affiliate transactions, mergers) and customary events of default. Prior term loan and ABL were terminated on June 24, 2026 in connection with these financings.

Why It Matters
This refinancing extends maturities and refreshes Floor & Decor’s committed liquidity: a new 7‑year term loan and a multi‑year $800M revolver provide runway and optional borrowing capacity. The facilities are secured and include standard covenants that may limit certain corporate actions (dividends, new liens, transactions with affiliates). For investors, the deal affects the company’s capital structure (new secured debt, interest margins tied to SOFR/ABR) and preserves access to working capital through the revolver and incremental capacity.