THE WHAT?  The Estée Lauder Companies Inc. has entered into a senior unsecured credit agreement, establishing a US$2.5 billion revolving credit facility. This new agreement, effective June 7, 2024, replaces a previous facility from October 2021 and includes provisions for multicurrency loans and letters of credit.

THE DETAILS  The agreement, signed with JPMorgan Chase Bank, N.A., and involving various lenders, provides a five-year revolving credit facility that can be extended for up to two additional years. The facility supports the company and its eligible subsidiaries, with the entire US$2.5 billion currently undrawn and available for general corporate purposes.

THE WHY?  This new credit agreement ensures that Estée Lauder has robust financial support for its corporate strategies and operational needs over the next five years. By securing this facility, Estée Lauder can effectively manage liquidity, fund corporate initiatives, and maintain financial stability, ensuring continued growth and market presence in the competitive beauty industry.