On the subject of market uncertainty brought on by the COVID-19 pandemic, W.W. Grainger Inc. chairman and CEO D.G. Macpherson says he desires to be further cautious with the corporate’s monetary place.
D.G. Macpherson, CEO, W.W. Grainger
Macpherson mentioned Tuesday that Grainger has determined to attract down $1 billion from its unsecured revolving credit score facility, bringing its money available to roughly $1.5 billion.
Macpherson emphasised that the borrowed funds will assist Grainger to protect in opposition to additional market disruption ensuing from the unfold of COVID-19, the illness brought on by the novel coronavirus that has disrupted enterprise operations in the US and worldwide.
Grainger, whose ecommerce websites embody its flagship Grainger.com for enterprise prospects and Zoro.com for smaller companies, does about 71% of its annual gross sales via digital channels, or roughly $8.2 billion out of a complete of $11.5 billion in 2019 gross sales.
A ‘proactive measure’
“Grainger’s monetary place is robust,” Macpherson mentioned in saying the mortgage. “Nevertheless, in an abundance of warning and as a proactive measure, we’re taking prudent actions to extend our liquidity and monetary flexibility. We stay dedicated to offering superior customer support and sustaining excessive ranges of stock and to help our prospects via this pandemic and past.”
He added, “Our precedence stays the well being and security of our workforce members and prospects as we proceed to navigate this unsure interval.”
Grainger mentioned its revolving credit score facility permits it to borrow as much as $1.25 billion, leaving it with $250 million nonetheless out there. It mentioned the principal stability of the mortgage is due on Feb. 14, 2025; Grainger added that it does “not have any materials debt maturities previous to that date.”
Grainger additionally famous in a submitting with the U.S. Securities and Trade Fee final week that it has the power underneath its revolving credit score facility to request a rise in its borrowing restrict to $1.875 billion.
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