LOS ANGELES — Unified Grocers here said yesterday it has exercised a provision in its current revolving credit agreement that increases the total committed funds available to the company to $275 million from $250 million, using a new bank.
The provision allows Unified to expand the capacity of its existing credit agreement to a maximum of $300 million without changing the favorable terms and conditions of its existing agreement, which expires in 2012, the company said.
According to Al Plamann, president and chief executive officer, “We believe it is prudent to increase our borrowing capacity when we have the opportunity to do so and the terms are favorable, [to] provide us with greater flexibility in the future.”
The additional borrowing capacity is being provided by Fifth Third Bank, Cincinnati, a new lender to Unified.
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