Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
As previously disclosed, Ulta Beauty, Inc. (the "Company"), Ulta Salon,
Cosmetics & Fragrance, Inc. and certain of their subsidiaries are parties to
that certain Second Amended and Restated Loan Agreement, as further amended (the
"Loan Agreement"), with Wells Fargo Bank, National Association, as
Administrative Agent, Collateral Agent and the other lenders party thereto. The
Loan Agreement matures of March 11, 2025, provides maximum revolving loans equal
to the lesser to $1.0 billion or a percentage of eligible owned inventory and
eligible owned receivables, and outstanding borrowings bear interest, at the
Company's election, at either a base rate plus a margin of 0%-0.125% or the
London Interbank Offered Rate plus a margin of 1.125%-1.25%, with such margins
based on average daily excess borrowing availability in each fiscal quarter. For
additional terms of the Loan Agreement, please see the Company's Current Report
on Form 8-K filed with the Securities and Exchange Commission on March 16, 2020.
On March 18, 2020, as a precautionary measure and to enhance financial
flexibility, the Company drew down $800 million under the Loan Agreement. In
addition, the Company is re-evaluating the pace and timing of its stock
repurchase program, reducing its capital expenditure and expense plans, and
aligning inventory positions with current sales trends, while also leveraging
its digital and e-commerce platforms to drive sales during the temporary closure
of its stores.
A copy of the Company's press release relating to the foregoing is filed as
Exhibit 99 to this Current Report on Form 8-K.
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