NIKE, Inc. Files 8-K on Material Agreements and Obligations
Ticker: NKE · Form: 8-K · Filed: Mar 11, 2024 · CIK: 320187
Sentiment: neutral
Topics: material-agreement, financial-obligation
Related Tickers: NKE
TL;DR
NIKE filed an 8-K detailing new material agreements and financial obligations.
AI Summary
NIKE, Inc. filed an 8-K on March 11, 2024, reporting on events that occurred on March 8, 2024. The filing indicates the entry into and termination of material definitive agreements, as well as the creation of direct financial obligations or off-balance sheet arrangements. Specific details regarding these agreements and obligations are not elaborated upon in the provided text.
Why It Matters
This filing signals significant changes in NIKE's contractual and financial commitments, which could impact its future operations and financial health.
Risk Assessment
Risk Level: medium — The filing mentions material definitive agreements and financial obligations, which inherently carry risk, but the specific nature and impact are not detailed.
Key Players & Entities
- NIKE, Inc. (company) — Registrant
- 0000320187-24-000009 (dollar_amount) — Accession Number
- March 8, 2024 (date) — Date of earliest event reported
- March 11, 2024 (date) — Date of Report
- ONE BOWERMAN DRIVE (location) — Principal executive offices address
- BEAVERTON, OR 97005-6453 (location) — Principal executive offices address
FAQ
What specific material definitive agreements did NIKE, Inc. enter into or terminate?
The provided text of the 8-K filing does not specify the details of the material definitive agreements entered into or terminated.
What are the nature of the direct financial obligations or off-balance sheet arrangements created?
The filing indicates the creation of such obligations, but the specific details are not disclosed in the provided excerpt.
What was the effective date of the events reported in this 8-K?
The date of the earliest event reported is March 8, 2024.
What is NIKE, Inc.'s principal executive office address?
NIKE, Inc.'s principal executive offices are located at ONE BOWERMAN DRIVE, BEAVERTON, OR 97005-6453.
What is NIKE, Inc.'s telephone number?
NIKE, Inc.'s telephone number, including area code, is (503) 671-6453.
Filing Stats: 1,129 words · 5 min read · ~4 pages · Grade level 10.6 · Accepted 2024-03-11 16:30:45
Key Financial Figures
- $1.0 billion — Day Credit Agreement provides for up to $1.0 billion of borrowings pursuant to a 364-day uns
- $1.5 billion — er the 364-Day Credit Facility to up to $1.5 billion. The Company may also request renewal o
Filing Documents
- nke-20240308.htm (8-K) — 32KB
- nike-364xdaycreditagreemen.htm (EX-10.1) — 805KB
- nke-20240308_g1.jpg (GRAPHIC) — 4KB
- 0000320187-24-000009.txt ( ) — 1088KB
- nke-20240308.xsd (EX-101.SCH) — 2KB
- nke-20240308_lab.xml (EX-101.LAB) — 21KB
- nke-20240308_pre.xml (EX-101.PRE) — 12KB
- nke-20240308_htm.xml (XML) — 3KB
01 Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement 364-Day Credit Facility On March 8, 2024, NIKE, Inc. (the "Company") entered into a Credit Agreement with Bank of America, N.A., as administrative agent, and the other financial institutions named therein as lenders (the "364Day Credit Agreement"). The 364Day Credit Agreement provides for up to $1.0 billion of borrowings pursuant to a 364-day unsecured revolving credit facility (the "364Day Credit Facility"), which is available for working capital and general corporate purposes, including supporting the issuance of commercial paper. In addition to loans in U.S. Dollars, borrowings under the 364Day Credit Facility will be available in Canadian Dollar, Euro, Sterling, Yen and any other currency that is freely convertible into U.S. Dollars and agreed to by the administrative agent and the then existing lenders. The 364-Day Credit Facility matures on March 7, 2025, assuming the maturity date is not extended. The Company may, upon the agreement of either of the then existing lenders or of additional banks not currently party to the 364-Day Credit Agreement, increase the commitments under the 364-Day Credit Facility to up to $1.5 billion. The Company may also request renewal of the 364Day Credit Facility for an additional 364-day period or convert any amounts outstanding into a term loan for a period of up to one year, which term loan would mature no later than the anniversary of the then effective termination date. As of March 8, 2024, the Company is the only borrower under the 364-Day Credit Facility. However, the 364Day Credit Agreement allows for the Company to designate additional subsidiary borrowers from time to time. In the event that any subsidiary of the Company becomes a borrower, the Company has agreed to provide a guarantee in respect of any such subsidiary's obligations in relation with the revolving credit facility. Borrowings under the 364-Day Credit Facility will bear interest, at the Company'
02 Termination of a Material Definitive Agreement
Item 1.02 Termination of a Material Definitive Agreement Termination of Prior 364-Day Credit Agreement On March 8, 2024, concurrently with the Company's entry into the 364-Day Credit Agreement described in Item 1.01 hereof, the Company terminated the existing Credit Agreement dated March 10, 2023, which provided for up to $1.0 billion of borrowings in U.S. Dollars pursuant to a 364day unsecured revolving credit facility, with the banks, financial institutions and other lenders signatory thereto (the "Prior 364Day Credit Agreement"). The Prior 364Day Credit Agreement contained covenants that, among other things, limited or restricted the ability of the Company and its subsidiaries to incur additional liens; engage in mergers, acquisitions and dispositions; engage in transactions with affiliates; and use proceeds of loans under the Prior 364-Day Credit Agreement. The Prior 364Day Credit Agreement did not include any financial covenants. No amounts were outstanding under this facility as of March 8, 2024. The Prior 364Day Credit Agreement would have expired on March 8, 2024.
03 Creation of a Direct Financial Obligation or an Obligation Under and Off-Balance Sheet Arrangement
Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under and Off-Balance Sheet Arrangement The information contained in Item 1.01 of this current report on Form 8-K is by this reference incorporated in this Item 2.03.
01. Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Exhibit 10.1 Credit Agreement dated as of March 8, 2024, among NIKE, Inc., Bank of America, N.A., as Administrative Agent, Citibank, N.A. and JPMorgan Chase Bank, N.A. as Co-Syndication Agents, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and HSBC Bank USA, National Association, as Co-Documentation Agents, and the other Banks named therein. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. NIKE, Inc. (Registrant) Date: March 11, 2024 By: /s/ Matthew Friend Matthew Friend Executive Vice President and Chief Financial Officer