CINCINNATI — Kroger Co. here said Monday it has negotiated a new $2 billion revolving credit facility, replacing a $2.5 billion facility that would have matured in November 2011.
The facility will be used for general corporate purposes. Leading the group of lenders, which includes 23 banks, are Bank of America and Citibank as administrative and syndication agents, respectively. The group also includes The Royal Bank of Scotland, U.S. Bank and Wells Fargo Bank as co-documentation agents.
"We are very pleased with the clear showing of support and confidence from the banking community, particularly during a challenging credit market," said Scott Henderson, Kroger's vice president and treasurer. "This new revolving credit facility provides Kroger with the financial flexibility to continue executing its business and financial strategies."
In a research note, debt ratings agency Moody's said the new facility will not have any impact on Kroger's Baa2 long-term senior unsecured ratings or the company's Prime-2 short-term rating.