LOS ANGELES — Unified Grocers here said Tuesday it has completed a refinancing of its senior credit facilities, including the replacement of its existing revolving credit facility and the pay-down of approximately half its higher-rate senior secured notes.
The company said it expects the refinancing will provide it with more flexibility and lead to a reduction in its ongoing borrowing costs. The new credit agreement is a $316 million, five-year facility that consists of a $275 million revolver, an asset-based facility with borrowings based on inventory and receivables; and a $41-million term loan, secured by some of Unified's real property.
More news: Unified Partners With Charlie's Produce
Concurrent with the new credit facility is a $50 million pay-down of Unified's fixed-rate senior secured notes, with the remaining notes maturing in January 2016.
"By leveraging our significant asset base and limiting the extent of financial covenants within the agreements, we expect much greater flexibility and overall efficiency in the day-to-day operation of our business," said Bob Ling, president and chief executive officer. "We are confident this financing will provide the foundation to execute on our initiatives."
| Suggested Categories | More from Supermarketnews |
 |
|
|
|
