The Pantry Expands Credit Facilities
SANFORD, N.C. -- To enhance overall financial flexibility so that it may take advantage of further acquisition opportunities, The Pantry Inc. announced that it has completed an expansion and renegotiation of certain terms of its senior secured credit facilities.
These include a $350 million term loan, increased from about $304 million before, and a $225 million revolving credit facility, increased from a previous $150 million.
The agreement also includes a new "delayed-draw" feature, which gives the Southeast c-store chain the option to add as much as $100 million to its term loan. The same pricing and other terms on a committed basis would apply at any time over the next year.
Final maturities for the facilities were extended to 2014 for the term loan, and 2013 for the revolver. With outstanding letters of credit absorbing about $50 million of The Pantry's borrowing capacity under the revolver, the unused remainder is available for acquisition opportunities and other corporate purposes, the company reported.
"We are pleased to complete the renegotiation of our credit agreement in favorable terms," Peter J. Sodini, The Pantry's chairman and CEO, said in a written statement from the company. "We were able to significantly expand the size and extend the maturities of our facilities with pricing comparable to our previous agreement."
"The other terms and covenants are less restrictive, enhancing our overall financial flexibility and ability to take advantage of further acquisition opportunities," he noted.
These include a $350 million term loan, increased from about $304 million before, and a $225 million revolving credit facility, increased from a previous $150 million.
The agreement also includes a new "delayed-draw" feature, which gives the Southeast c-store chain the option to add as much as $100 million to its term loan. The same pricing and other terms on a committed basis would apply at any time over the next year.
Final maturities for the facilities were extended to 2014 for the term loan, and 2013 for the revolver. With outstanding letters of credit absorbing about $50 million of The Pantry's borrowing capacity under the revolver, the unused remainder is available for acquisition opportunities and other corporate purposes, the company reported.
"We are pleased to complete the renegotiation of our credit agreement in favorable terms," Peter J. Sodini, The Pantry's chairman and CEO, said in a written statement from the company. "We were able to significantly expand the size and extend the maturities of our facilities with pricing comparable to our previous agreement."
"The other terms and covenants are less restrictive, enhancing our overall financial flexibility and ability to take advantage of further acquisition opportunities," he noted.