On June 27, 2016, Best Buy Co., Inc. entered into a $1.25 billion five-year senior unsecured revolving credit facility agreement with JPMorgan Chase Bank, N.A as administrative agent, and a syndicate of banks. The five-year facility agreement will replace the previous $1.25 billion senior unsecured revolving credit facility, with a syndicate of banks, including JPMorgan acting as administrative agent. The previous facility, which was originally scheduled to expire in June 2019, was terminated on June 27, 2016. The five-year facility agreement permits borrowings up to $1.25 billion and terminates in June 2021. 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 is determined at the registrant’s option as: (i) the sum of (a) the greatest of (1) JPMorgan's prime rate, (2) the greater of the federal funds rate and the overnight bank funding rate plus, in each case, 0.5%, and (3) the one-month London Interbank Offered Rate, subject to certain adjustments (“ LIBOR ”) plus 1%, and (b) a variable margin rate (the “ ABR Margin ”); or (ii) the LIBOR plus a variable margin rate (the “ LIBOR Margin ”). In addition, a facility fee is assessed on the commitment amount. The ABR Margin, LIBOR 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 0.00% to 0.50%, the LIBOR Margin ranges from 0.90% to 1.50%, and the facility fee ranges from 0.100% to 0.250%.

The five-year facility agreement is guaranteed by certain specified subsidiaries of the registrant and contains customary affirmative and negative covenants. Among other things, these covenants restrict the registrant’s and certain of its subsidiaries’ ability to incur certain types or amounts of indebtedness, incur liens on certain assets, make material changes in corporate structure or the nature of its business, dispose of material assets, engage in a change in control transaction, make certain foreign investments, enter into certain restrictive agreements, or engage in certain transactions with affiliates. The Five-Year Facility Agreement also contains covenants that require the registrant to maintain a maximum quarterly cash flow leverage ratio and a minimum quarterly interest coverage ratio. The five-year facility agreement contains customary default provisions including, but not limited to, failure to pay interest or principal when due and failure to comply with covenants.

According to an exhibit submitted with the 8-K filing, Lenders include  J.P. Morgan Chase, U.S. Bank National Association, Compass Bank, Citigroup Global Markets Inc., and  Merrill Lynch, Pierce, Fenner & Smith Incorporated as Joint Lead Arrangers and Joint Bookrunners; U.S. Bank National Association as Syndication Agent; and Bank of America, N.A., Compass Bank, and Citibank, N.A., as Documentation Agents.