CHICAGO, March 31, 2020 /PRNewswire/ -- Grainger
(NYSE: GWW), the leading broad line supplier of maintenance, repair
and operating (MRO) products serving businesses and institutions,
today announced that it elected to draw down $1 billion from its unsecured revolving credit
facility. This is a proactive measure to increase the
company's cash position and preserve financial flexibility in light
of current uncertainty in the global markets resulting from the
COVID-19 pandemic. The funds will supplement the company's strong
cash position.
"Our priority remains the health and safety of our team members
and customers as we continue to navigate this uncertain period,"
said DG Macpherson, Grainger Chairman and CEO. "Grainger's
financial position is strong. However, in an abundance of caution
and as a proactive measure, we are taking prudent actions to
increase our liquidity and financial flexibility. We remain
committed to providing superior customer service and maintaining
high-levels of inventory and to support our customers through
this pandemic and beyond."
After the draw down, Grainger expects to have approximately
$1.5 billion of cash on hand and
approximately $250 million of
available committed capacity remaining under the revolving credit
facility. The principal balance of borrowings under the revolving
credit facility is due on February 14,
2025, and the Company does not have any material debt
maturities prior to that date. With the actions taken today, the
company believes it will have sufficient liquidity to navigate
through this period of heightened uncertainty.
About Grainger
W.W. Grainger, Inc., with 2019 sales of $11.5 billion, is North
America's leading broad line supplier of maintenance, repair
and operating (MRO) products, with operations also in Europe, Asia
and Latin America.
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"forward-looking statements." Forward-looking statements can
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Forward-looking statements are not guarantees of future performance
and are subject to a number of assumptions, risks and
uncertainties, many of which are beyond our control, which could
cause actual results to differ materially from such statements.
Forward-looking statements include, but are not limited to,
statements about cash on hand, liquidity, financial position and
financial flexibility. Important factors that could cause actual
results to differ materially from those in the forward-looking
statements include, among others: business, supply chain, health of
employees and economic effects of the COVID-19 pandemic; higher
product costs or other expenses; a major loss of customers; loss or
disruption of source of supply; increased competitive pricing
pressures; failure to develop or implement new technology
initiatives; the implementation, timing and results of our
strategic pricing initiatives; the outcome of pending and future
litigation or governmental or regulatory proceedings, including
with respect to wage and hour, anti-bribery and corruption,
environmental, advertising, privacy and cybersecurity matters;
investigations, inquiries, audits and changes in laws and
regulations; failure to comply with laws, regulations and
standards; disruption of information technology or data security
systems involving us or third parties on which we depend; general
industry, economic, market or political conditions; general global
economic conditions, including tariffs and trade issues and
policies; currency exchange rate fluctuations; market volatility;
commodity price volatility; labor shortages; facilities disruptions
or shutdowns; higher fuel costs or disruptions in transportation
services; pandemic diseases and natural and other catastrophes;
unanticipated and/or extreme weather conditions; loss of key
members of management; our ability to operate, integrate and
leverage acquired businesses; changes in effective tax rates; our
common stock, including volatility in our stock price; and other
factors which can be found in our filings with the Securities and
Exchange Commission, including our most recent periodic reports
filed on Form 10-K and Form 10- Q, which are available on our
Investor Relations website. Forward-looking statements are given
only as of the date of this communication and we disclaim any
obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise,
except as required by law.
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SOURCE W.W. Grainger, Inc.