Kohl's Corporation (KSS) will suspend its quarterly dividend in 2020 because of the COVID-19 pandemic. Earlier this year the retailer had raised its quarterly dividend by 5.1 percent to $0.704 per share, marking 9 straight years of dividend increases.

The company filed a FORM 8-K today with the SEC announcing a credit agreement for a $1,500,000,000 senior secured, asset based revolving credit facility. The Credit Agreement contains customary events of default and financial, affirmative and negative covenants, including but not limited to aspringing financial covenant relating to the Company’s fixed charge coverage ratio and restrictions on indebtedness, liens, investments, assetdispositions and restricted payments, including a restriction on dividends in 2020 if the Company’s outstanding borrowings under the CreditAgreement exceed $1,000,000,000.

Kohl's had paid a dividend to shareholders every year since 2011. The company was paying $437 million in dividends to shareholders annually prior to this suspension was announced.

Kohl's Corporation is an omnichannel retailer. The company sells private label, exclusive and national brand apparel, footwear, accessories, beauty and home products in its department stores, FILA outlets, Off-Aisle clearance centers and through its website. Kohl's sells moderately-priced proprietary and national brand apparel, footwear, accessories, beauty and home products. The company's merchandise mix includes both national brands and proprietary brands that are available only at Kohl's. Its proprietary portfolio includes well-known established private brands such as Apt. 9, Croft & Barrow, Jumping Beans, SO and Sonoma Goods for Life and exclusive brands that are developed and marketed through agreements with nationally-recognized brands such as Food Network, LC Lauren Conrad, Elle and Simply Vera Vera Wang. National brands generally have higher selling prices, but lower gross margins, than proprietary brands. Kohl’s Corporation was organized in 1988 and is a Wisconsin corporation.