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    The Pantry Reprices Senior Secured Credit Facilities

    Yearly interest expense to reduce by approximately $1.6 million.

    SANFORD, N.C. -- The Pantry Inc. has repriced and renegotiated certain terms of its senior secured credit facilities. The facilities include a term loan with a remaining balance of $317 million, as well as a $70 million revolving credit facility.

    Under the revised agreement, the interest rate spread was reduced by 50 basis points, which will reduce interest expense on an annualized basis by approximately $1.6 million, or 5 cents per share. The revised agreement also increased the aggregate size of potential incremental term loan facilities, which The Pantry may access in the event of an acquisition, from $50 million to $75 million. In addition, the agreement includes less restrictive terms regarding the use of proceeds from possible equity offerings for acquisitions.

    "We are pleased with this repricing and renegotiation of our credit agreement," said Peter J. Sodini, The Pantry's president and CEO. "Not only will we reduce interest expense on an ongoing basis, but we will also increase our flexibility to pursue our long-term growth strategies. The more favorable terms are a direct reflection of our significantly improved earnings and free cash flow over the last two fiscal years."

    Additional details are available in the amended credit agreement, which will be filed on a Form 8-K with the Securities and Exchange Commission this week.

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