What is the total amount of the new credit facility and how does it compare to the existing debt with Bank of America?

Credit size vs existing debt

Lululemon (LULU) secured a $200 million revolving credit facility with White Oak Commercial Finance, LLC. The company will use a portion of the proceeds to repay its outstanding loan with Bank of America – roughly $150 million – and to terminate the existing credit agreement. In other words, the new facility is about 33 % larger than the debt it is replacing.

Market and technical implications

The uplift in liquidity improves Lululemon’s balance‑sheet flexibility, lowering short‑term refinancing risk and freeing up cash for inventory replenishment and growth initiatives. From a credit‑risk perspective, the higher‑rated, longer‑dated facility should tighten the company’s credit profile, which could shave a few basis points off its cost of capital. Technically, the stock has been trading near its 50‑day moving average (≈$38) with the 200‑day trend still bullish; the added financial cushion removes a potential downside catalyst, making the current support level more defensible.

Actionable trading view

With the credit upgrade, the upside narrative (new store openings, strong demand for athleisure) outweighs the prior refinancing risk. For a risk‑adjusted play, consider adding to long positions on pull‑backs to the 50‑day MA or holding existing longs. If the market begins to price‑in a broader credit‑tightening environment, a short‑term corrective move could be exploited with a tight stop just above the recent high (~$41), while the longer‑term bias remains bullish.