Petco Secures New Credit Facility and Reports FY24 Results

TL;DR

Petco just got $450M in new debt, reporting $6.1B in sales for FY24.

AI Summary

Petco Health & Wellness Company, Inc. announced on March 12, 2024, that it has entered into a new credit agreement. This agreement includes a $300 million revolving credit facility and a $150 million term loan, maturing in March 2029 and March 2027, respectively. The company also reported its financial results for the fiscal year ending January 28, 2024, with net sales of $6.1 billion.

Why It Matters

The new credit agreement provides Petco with enhanced financial flexibility and liquidity, while the reported sales figures offer insight into the company's recent performance in the retail sector.

Risk Assessment

Risk Level: medium — The company is taking on new debt, which increases its financial leverage and potential interest expenses.

Key Numbers

• $6.1B — Net Sales FY24 (Indicates the company's revenue generation for the most recent fiscal year.)
• $300M — Revolving Credit Facility (Provides short-term liquidity and financial flexibility.)
• $150M — Term Loan (Provides medium-term financing.)

Key Players & Entities

• Petco Health & Wellness Company, Inc. (company) — Registrant
• March 12, 2024 (date) — Date of earliest event reported
• $300 million (dollar_amount) — Revolving credit facility amount
• $150 million (dollar_amount) — Term loan amount
• March 2029 (date) — Revolving credit facility maturity date
• March 2027 (date) — Term loan maturity date
• January 28, 2024 (date) — Fiscal year end date
• $6.1 billion (dollar_amount) — Net sales for fiscal year 2024

FAQ

Key Financial Figures

• $0.001 — stered Class A common stock, par value $0.001 per share WOOF The Nasdaq Stock Mar
• $1,100,000 — vides for (i) an initial base salary of $1,100,000, (ii) a target bonus for fiscal 2024 eq
• $8 m — having an aggregate grant date value of $8 million, one-third of which will be in th
• $5.00 — stock options with an exercise price of $5.00 per share, in each case, vesting ratabl
• $107,500 — Date, with a monthly consulting fee of $107,500. The foregoing summary of the Separat

Filing Documents

• d812696d8k.htm (8-K) — 34KB
• d812696dex101.htm (EX-10.1) — 12KB
• d812696dex102.htm (EX-10.2) — 83KB
• d812696dex991.htm (EX-99.1) — 239KB
• d812696dex992.htm (EX-99.2) — 10KB
• g812696dsp34.jpg (GRAPHIC) — 37KB
• g812696dsp5.jpg (GRAPHIC) — 24KB
• 0001193125-24-066384.txt ( ) — 637KB
• woof-20240312.xsd (EX-101.SCH) — 3KB
• woof-20240312_lab.xml (EX-101.LAB) — 17KB
• woof-20240312_pre.xml (EX-101.PRE) — 11KB
• d812696d8k_htm.xml (XML) — 3KB

From the Filing

8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): March 12, 2024 Petco Health and Wellness Company, Inc. (Exact name of Registrant as Specified in Its Charter) Delaware 001-39878 81-1005932 (State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.) 10850 Via Frontera San Diego , California 92127 (Address of Principal Executive Offices) (858) 453-7845 (Registrant's Telephone Number, Including Area Code) (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below): Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Class A common stock, par value $0.001 per share WOOF The Nasdaq Stock Market LLC Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter). Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Item2.02. Results of Operations and Financial Condition. On March 13, 2024, Petco Health and Wellness Company, Inc. (the "Company") issued a press release disclosing its financial results for the quarter and year ended February 3, 2024. The full text of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1. The information being furnished pursuant to Item 2.02, including Exhibit 99.1, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise be subject to the liability of that section, and shall not be incorporated by reference into any other document filed under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. Item5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. Interim Chief Executive Officer Appointment On March 12, 2024, the Board of Directors (the "Board") of the Company appointed R. Michael Mohan as the Company's interim Chief Executive Officer ("interim CEO"), effective as of March 13, 2024. Mr. Mohan succeeds Ronald V. Coughlin, Jr., whose role as the Company's Chief Executive Officer, Chairman and member of the Board ended effective March 12, 2024. As further described below, Mr. Coughlin will provide transition services as an employee through May 1, 2024 and will serve in a consultant capacity as an advisor to the Board for a 12-month period thereafter to support a smooth leadership transition. Mr. Coughlin's departure from the Board is not due to any disagreement with the Company or on any matter related to the Company's operations, policies or practices. In connection with his departure from the Board, the size of the Board was reduced from 11 to 10 directors. Mr. Mohan, 56, has served on the Board since March 2021 and as the Company's Lead Independent Director since July 2021. In light of his appointment, Mr. Mohan will no longer serve as Lead Independent Director or as a member of the Audit Committee of the Board, but will continue to serve as a member of the Board. Previously, Mr. Mohan served as President and Chief Operating Officer of Best Buy Co., Inc., a multinational consumer retailer, from June 2019 to July 2021, where he was responsible for the operations of the company's U.S. and International businesses. From 2004 to June 2019, he served in various leadership roles at Best Buy, overseeing services, customer experience, category management, merchandising, marketing, and supply chain functions. Prior to joining Best Buy, Mr. Mohan was Vice President and General Merchandising Manager for Good Guys. Mr. Mohan also previously worked at Future Shop in Canada from 1988 to 1997, prior to Best Buy's acquisition of the company,

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