SANFORD, N.C. -- The Pantry Inc. has announced that it has completed the expansion and renegotiation of certain terms of its senior secured credit facilities.
Chairman and CEO Peter J. Sodini said, We are pleased to complete the renegotiation of our credit agreement on favorable terms. We were able to significantly expand the size and extend the maturities of our facilities with pricing comparable to our previous agreement. In addition, the other terms and covenants are less restrictive, enhancing our overall financial flexibility and our ability to [image-nocss] take advantage of further acquisition opportunities.
The facilities include a $350 million term loan, increased from approximately $304 million previously, and a $225 million revolving credit facility, increased from $150 million previously. In addition, the agreement includes a new delayed-draw feature, which provides The Pantry with the option to add up to $100 million to its term loan, with the same pricing and other terms on a fully committed basis, at any time over the next 12 months.
Final maturities for the facilities were extended to 2014 for the term loan and 2013 for the revolver. While outstanding letters of credit effectively absorb approximately $50 million of the company's borrowing capacity under the revolver, the remaining capacity is currently unused and available for potential acquisitions and other corporate purposes.
Additional details will be available in a Form 8-K to be filed with the Securities & Exchange Commission (SEC) this week, the company said.
Based in Sanford, N.C., The Pantry is the leading independently operated convenience store chain in the southeastern United States and one of the largest independently operated c-store chains in the country, with revenues for fiscal 2006 of approximately $6 billion. As of May 10, 2007, it operated 1,639 stores in 11 states under several banners, including Kangaroo Express, its primary operating banner.
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