SAN DIEGO, Mar. 5, 2021 / PRNewswire / – Petco Health and Wellness Company, Inc. (NASDAQ: WOOF), a comprehensive partner in the health and welfare of companion animals, today announced that the March 4, 2021, it successfully completed the refinancing of its existing term loan facility with borrowings under a new term loan facility and entered into a new revolving asset-based credit facility replacing its revolving credit facility. based on existing assets.

The new senior term loan facility has a principal balance of $ 1,700 million maturing in 2028. Borrowings under the New Term Loan Facility bear interest at a rate equal to an applicable margin plus, at our option, a base rate or a LIBOR rate. The applicable margin is 2.25% for borrowings at the base rate and 3.25% for borrowings at the LIBOR rate. The proceeds of the new term loan facility were used to repay the $ 1,678 million term loan maturing in 2022 and, with available liquidity, pay the fees and expenses related to refinancing operations.

The company has also successfully secured commitments for a $ 500 million revolving credit facility based on assets maturing in 2026. The new revolving credit facility replaced the $ 500 million revolving credit facility maturing in 2023. Borrowings under the new revolving credit facility bear interest at a rate equal to an applicable margin plus, at our option, a base rate or a LIBOR rate. The applicable margin is between 0.25% and 0.75% for prime rate loans and between 1.25% and 1.75% for LIBOR loans.

By taking advantage of low borrowing costs and actively managing its short to medium term maturity profile, Petco has improved its ability to invest for growth. This step is in line with Petco’s strategy to improve its leverage position while proactively investing in key levers to drive growth, including integration and expansion of electronic and digital commerce, analytics capabilities data, veterinary services, marketing and advertising, and brands owned. Based on Packaged Facts and internal company estimates, from 2020 to 2024, the industry is expected to grow at a CAGR of 7%, driven by steady and predictable growth in the underlying pet population. associated with strong tail winds associated with the humanization of pets.

“Today’s announcement is another vote of confidence in Petco and underscores our transformation into a company with strong momentum that is actively shaping its future,” said Mike Nuzzo, Chief Financial Officer and Chief Operating Officer of Petco. “Our successful IPO in January allowed us to repay significant debt and with the announcement of this oversubscribed refinancing, and our continued strong performance in the fourth quarter of 2020, we have positively repositioned Petco while improving our financial flexibility.”

About Petco, The Health + Wellness Co.
Petco is a category-defining health and wellness company focused on improving the lives of pets, pet parents, and our own Petco partners. Since our founding in 1965, we’ve been at the forefront of new standards in pet care, delivering comprehensive wellness solutions through our products and services, and creating communities that empower the parent-pet bond. We operate over 1,500 Petco locations in the United States, Mexico and Puerto Rico, including a growing network of over 100 in-store veterinary hospitals, and offer a comprehensive online resource for the health and wellness of pets at petco.com and on the Petco app. In tandem with The Petco Foundation, an independent, non-profit organization, we work with and support thousands of local animal welfare groups across the country, and through in-store adoption events, we’ve helped find homes for over 6 , 5 million animals.

Caution Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, concerning expectations, beliefs, plans, objectives, goals, strategies, events or future performance and underlying assumptions and other statements that are not statements of historical fact. Although the company believes that the expectations and assumptions reflected in these statements are reasonable, there can be no assurance that such expectations will prove to be correct. Forward-looking statements are subject to many risks and uncertainties, including risk factors that the company identifies in its filings with the Securities and Exchange Commission, and actual results may differ materially from the results discussed in such forward-looking statements. The company assumes no obligation to publicly update any forward-looking statements it may make, whether as a result of new information, future events or otherwise, except as the law, regulation or other legal authority competent require it.

SOURCE Petco Health and Wellness Company, Inc.