Gap Inc. Enters into New $500M Credit Facility

Gap Inc. GPS today announced that it has entered into a new $500 million revolving credit facility with a syndicate of banks led by BofA Merrill Lynch, J.P. Morgan and Citigroup Global Markets. The new financing matures in 2016 and replaces the Company's existing $500 million revolving credit facility. As part of the same financing agreement, the Company also entered into a $400 million five-year term loan. Since 2002, Gap Inc. has demonstrated its ability to generate consistent and strong operating cash flow, through various business cycles and even the global recession. The Company has generated an average of over $1 billion of free cash flow per year over the past five years and ended fiscal year 2010 with $1.7 billion of cash and short-term investments on its balance sheet.