DICK'S Sporting Goods: $2.4 Billion Refinancing for Foot Locker Acquisition
Deal News | Jun 06, 2025 | Wachtell, Lipton, Rosen & Katz
DICK'S Sporting Goods, Inc. has embarked on a significant refinancing journey as part of its planned acquisition of Foot Locker, Inc., valued at $2.4 billion. This strategic initiative involves a complex exchange offer and consent solicitation for Foot Locker's existing 4.000% Senior Notes due 2029. The offer relates to replacing up to $400 million worth of these notes with new notes issued by DICK'S under the same interest terms. In tandem, DICK'S is modernizing its financial arrangements by replacing its former $1.6 billion unsecured revolving credit facility with a more robust $2 billion credit facility. This includes an allocation of up to $250 million specifically earmarked on a certain funds basis for facilitating the acquisition and its associated financial activities. Legal powerhouse Wachtell, Lipton, Rosen & Katz has been engaged to provide advisory support in orchestrating these transactions.
Sectors
- Retail Industry
- Investment Banking
- Legal Advisory
Geography
- United States – DICK'S Sporting Goods and Foot Locker are both headquartered in the United States, emphasizing the geographical focus of this transaction.
Industry
- Retail Industry – DICK'S Sporting Goods and Foot Locker are major participants in the retail sector, focusing on sporting goods and athletic apparel.
- Investment Banking – The refinancing transaction and legal advisory involve investment banking elements, particularly in facilitating exchange offers and credit arrangements.
- Legal Advisory – The involvement of Wachtell, Lipton, Rosen & Katz highlights the relevance of legal expertise in M&A transactions and refinancing deals.
Financials
- $2.4 billion – The total value for the refinancing transactions related to the acquisition of Foot Locker by DICK'S Sporting Goods.
- $400 million – The aggregate principal amount for new 4.000% Senior Notes to be issued by DICK'S.
- $1.6 billion – The previous unsecured revolving credit facility that DICK'S replaced.
- $2 billion – The new unsecured revolving credit facility established by DICK'S.
- $250 million – The portion of the new credit facility available on a certain funds basis to fund the acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| DICK'S Sporting Goods, Inc. | Acquirer | Company | A leading retailer of sporting goods in the United States, planning to acquire Foot Locker. |
| Foot Locker, Inc. | Target | Company | A major retailer specializing in athletic footwear and apparel, targeted for acquisition by DICK'S Sporting Goods. |
| Wachtell, Lipton, Rosen & Katz | Legal Advisor | Company | A prestigious law firm providing legal advisory support for the refinancing transaction associated with the acquisition. |