UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

_____________________

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): March 7, 2007

 

Foot Locker, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

New York

1-10299

13-3513936

(State or other Jurisdiction
of Incorporation)

(Commission File Number)

(I.R.S. Employer
Identification No.)

 

112 West 34th Street, New York, New York

10120

(Address of Principal Executive Offices)

(Zip Code)

 

Registrant's telephone number, including area code: 212-720-3700

 

Former Name/Address
(Former name or former address, if changed from last report)

 

_____________________

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 


Item 1.01.               Entry into a Material Definitive Agreement

 

On March 7, 2007, Foot Locker, Inc. (the “Company”) entered into an amendment of its Fifth Amended and Restated Credit Agreement dated as of April 9, 1997 and amended and restated as of May 19, 2004 (the “Credit Agreement”), to provide that the Company may spend up to $300 million to repurchase shares of its capital stock during the term of the Credit Agreement. The Company’s Board of Directors has approved the $300 million share repurchase program, replacing the $150 million repurchase program approved by the Board in February 2006.

 

A copy of the amendment to the Credit Agreement is filed as Exhibit 10.1 to this report, and the description of the amendment herein is qualified in its entirety by reference to such amendment.

 

Item 9.01.

Financial Statements and Exhibits.

 

(c)

Exhibits

 

10.1

Amendment to Credit Agreement.

                

 

 

 


SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

FOOT LOCKER, INC.

(Registrant)

 

Date: March 12, 2007

By:

/s/ Robert W. McHugh

 

 

Senior Vice President and Chief Financial Officer

 

 


Exhibit 10.1

AMENDMENT NO. 4 TO CREDIT AGREEMENT

AMENDMENT NO. 4, dated as of March 7, 2007 (this “Amendment”), to the Fifth Amended and Restated Credit Agreement, dated as of April 9, 1997 and amended and restated as of May 19, 2004 (as heretofore amended, the “Credit Agreement”), among FOOT LOCKER, INC. (the “Company”), the SUBSIDIARIES party thereto, the BANKS party thereto, THE BANK OF NEW YORK, as Administrative Agent, LC Agent and Swingline Bank (the “Administrative Agent”), the CO-SYNDICATION AGENTS and CO-DOCUMENTATION AGENTS party thereto and the JOINT LEAD ARRANGERS party thereto.

WHEREAS, the Company has requested the Agents and the Banks to amend the Credit Agreement to permit additional stock repurchases thereunder;

NOW, THEREFORE, the parties hereto agree as follows:

SECTION 1.       Defined Terms; References. Unless otherwise specifically defined herein, each term used herein which is defined in the Credit Agreement has the meaning assigned to such term in the Credit Agreement. Each reference to “hereof”, “hereunder”, “herein” and “hereby” and each other similar reference and each reference to “this Agreement” and each other similar reference contained in the Credit Agreement shall, after this Amendment becomes effective, refer to the Credit Agreement as amended hereby.

SECTION 2.       Amendments. Section 5.15 of the Credit Agreement is amended and restated in its entirety to read to follows:

Section 5.15. Restricted Payments. Neither the Company nor any Subsidiary will declare or make any Restricted Payment on any date (with respect to any proposed Restricted Payment, a “Measurement Date”), except that:

(i) the Company may make Restricted Payments consisting of (1) repurchases of its common stock pursuant to employee stock plans in an aggregate amount not to exceed $2,000,000 in any Fiscal Year; and (2) payments in respect of shareholders rights plans in an aggregate amount not to exceed $1,750,000;

(ii) the Company may, subject to the proviso below, declare or make Restricted Payments so long as the aggregate amount of Restricted Payments made pursuant to this clause in any Fiscal Year does not exceed 50% of the consolidated net income from continuing operations of the Company and its Consolidated Subsidiaries for the then most recently ended Fiscal Year with respect to which the Company has delivered the financial statements described in Section 5.01(a); and

 

(iii) the Company may, subject to the proviso below, repurchase shares of its capital stock so long as the aggregate amount expended pursuant to this clause during the term of this Agreement does not exceed $300,000,000;

 

provided that no stock repurchase or other Restricted Payment shall be declared or made pursuant to clause (ii) or clause (iii) of this Section unless (x) immediately before and after giving effect thereto, no Default has occurred and is continuing and (y) the Fixed Charge Coverage Ratio for the period of four consecutive Fiscal Quarters most recently ended prior to the relevant Measurement Date and with respect to which the Company

 


has delivered the financial statements required to be delivered by it pursuant to Section 5.01(a) or (b), as the case may be, is at least 2.0:1.0.

SECTION 3.       Representation and Warranties. The Company and each other Obligor represents and warrants that, on and as of the Amendment Effective Date (as defined below) and immediately after giving effect to this Amendment, (a) the representations and warranties of the Obligors contained in the Loan Documents are true and (b) no Default has occurred and is continuing.

SECTION 4.       Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York.

SECTION 5.       Counterparts. This Amendment may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

 

SECTION 6.       Effectiveness. This Amendment shall become effective as of the date (the “Amendment Effective Date”) of receipt by the Administrative Agent of:

 

(a)         a counterpart hereof signed by each of the Company, the Subsidiary Borrowers and the Required Banks (or a facsimile or other written confirmation (in form reasonably satisfactory to the Administrative Agent) that each such party has signed a counterpart hereof);

 

(b)         payment of all invoiced accrued costs, fees and expenses relating to the Credit Agreement or any other Loan Document (including, without limitation, all fees and expenses payable pursuant to Section 9.03(a)(ii) of the Credit Agreement); and

 

(c)         a certificate from the chief executive officer, chief financial officer or treasurer of the Company certifying as to the matters set forth in Section 3 of this Amendment.

 

[Signature pages follow]

 


IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.

 

FOOT LOCKER, INC.

By:

/s/ John A. Maurer

 

Name:

John A. Maurer

 

Title:

Vice President and Treasurer

 

 


Subsidiary Borrowers:

 

FOOTLOCKER.COM, INC.

By:

/s/ John A. Maurer

 

Name:

John A. Maurer

 

Title:

Vice President and Treasurer

 

 

FOOT LOCKER RETAIL, INC.

By:

/s/ John A. Maurer

 

Name:

John A. Maurer

 

Title:

Vice President and Treasurer

 

 

TEAM EDITION APPAREL, INC.

By:

/s/ John A. Maurer

 

Name:

John A. Maurer

 

Title:

Vice President and Treasurer

 

 

FOOT LOCKER STORES, INC.

By:

/s/ John A. Maurer

 

Name:

John A. Maurer

 

Title:

Vice President and Treasurer

 

 

FOOT LOCKER SPECIALTY, INC.

By:

/s/ John A. Maurer

 

Name:

John A. Maurer

 

Title:

Vice President and Treasurer

 

 


FOOT LOCKER EUROPE B.V.

By:

/s/ Peter D. Brown

 

Name:

Peter D. Brown

 

Title:

Attorney-in-Fact

 

 

FOOT LOCKER AUSTRALIA, INC.

By:

/s/ John A. Maurer

 

Name:

John A. Maurer

 

Title:

Vice President and Treasurer

 

 

FOOT LOCKER CANADA CORPORATION

By:

/s/ John A. Maurer

 

Name:

John A. Maurer

 

Title:

Vice President and Treasurer

 

 


THE BANK OF NEW YORK, as
Administrative Agent and Bank

By:

/s/ Randolph E.J. Medrano

 

Name:

Randolph E.J. Medrano

 

Title:

Vice President

 

 

BANK OF AMERICA, N.A.

By:

/s/ Thomas J. Kane

 

Name:

Thomas J. Kane

 

Title:

SVP

 

 

JPMORGAN CHASE BANK, N.A.

By:

/s/ Jules Panno

 

Name:

Jules Panno

 

Title:

Vice President

 

 

WACHOVIA BANK, NATIONAL ASSOCIATION

By:

/s/ Susan T. Gallagher

 

Name:

Susan T. Gallagher

 

Title:

Vice President

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

By:

/s/ Lori Ross Avedikian

 

Name:

Lori Avedikian

 

Title:

Vice President

 

 

U.S. BANK, NATIONAL ASSOCIATION

By:

/s/ Gregory L. Dryden

 

Name:

Gregory L. Dryden

 

Title:

Sr. Vice President

 

 


 

THE BANK OF NOVA SCOTIA

By:

/s/ Todd S. Meller

 

Name:

Todd S. Meller

 

Title:

Managing Director

 

 

BANCO POPULAR PUERTO RICO

By:

/s/ Hector J. Gonzalez

 

Name:

Hector J. Gonzalez

 

Title:

Vice President