Company: BBY
Filing Date: 2025-04-23
Form Type: 8-K
Source: 0000764478-25-000011
Chunk: 0

Company: BEST BUY CO INC
Filing Date: 2025-04-23
Form: 8-K
Item: Item 1.01
Chunk 0
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Item 1.01

Entry into a Material Definitive Agreement.

On April 18, 2025, Best Buy Co., Inc. (“ Best Buy” or the “registrant”) entered into a new $1.25 billion five-year senior unsecured revolving credit facility agreement (the “ Five-Year Facility Agreement”) with U. S. Bank National Association (“ U. S. Bank”), as administrative agent, Bank of America, N. A., as syndication agent, and a syndicate of banks (collectively, the “ Lenders”). The Five-Year Facility Agreement replaces the previous $1.25 billion senior unsecured revolving credit facility, dated as of April 12, 2023 (the “ Previous Facility”), with a syndicate of banks, including JPMorgan Chase Bank, N. A. acting as administrative agent, and U. S. Bank acting as syndication agent. The Previous Facility, which was scheduled to expire in April 2028, was terminated on April 18, 2025. The Five-Year Facility Agreement permits borrowings of up to $1.25 billion and terminates in April 2030. No amounts are currently outstanding under the Five-Year Facility Agreement. The Five-Year Facility Agreement contains substantially the same terms as the Previous Facility.

The interest rate under the Five-Year Facility Agreement is variable and, barring certain events of default, is determined at the registrant’s option as: (i) the sum of (a) the greatest of (1) U. S. Bank’s prime rate, (2) the greater of the federal funds effective rate and the overnight bank funding rate plus, in each case, 0.5%, and (3) Adjusted Term SOFR (as defined in the Five-Year Facility Agreement) for an interest period of one month plus 1%, and (b) a variable margin rate (the “ ABR Margin”); or (ii) Adjusted Term SOFR for the applicable interest period plus a variable margin rate (the “ Term SOFR Margin”). In addition, a facility fee is assessed on the commitment amount. The ABR Margin, Term SOFR Margin and the facility fee are based upon the registrant’s current senior unsecured debt rating. Under the Five-Year Facility Agreement, the ABR Margin ranges from 0.000% to 0.015%, the Term SOFR Margin ranges from 0.565% to 1.015%, and the facility fee ranges from 0.060% to 0.