BJ's Wholesale Club Holdings, Inc. (NYSE: BJ) announced a commitment to an investment-grade financial policy, including a target of keeping leverage — measured as net debt to last twelve months adjusted EBITDA, excluding leases — below 1.0x. The company also stated its intention to transition to an unsecured capital structure.

According to the company's press release, the policy formalizes balance sheet discipline that BJ's has maintained since its 2018 initial public offering and aligns with its existing capital allocation priorities.

"BJ's has built a durable, highly cash-generative business, and an investment-grade financial policy reflects the continued strength and discipline of that model," said Laura Felice, Executive Vice President and Chief Financial Officer.

BJ's Wholesale Club operates 267 membership warehouse clubs and 208 BJ's Gas locations across 22 states, with headquarters in Marlborough, Massachusetts.