Grainger Elects to Draw Down on Revolving Credit Facility to Supplement Strong Cash Position

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Mar 31, 2020, 16:05 ET

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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SOURCE W.W. Grainger, Inc.