Darden refinances with new $1.25 billion five-year revolver

By William Gullotti

Buffalo, N.Y., Oct. 24 – Darden Restaurants, Inc. signed a new $1.25 billion five-year revolving credit facility with Bank of America, NA as administrative agent on Oct. 23, according to an 8-K filing with the Securities and Exchange Commission.

The revolver, which matures Oct. 23, 2028, includes a $500 million accordion and a $150 million sublimit for letters of credit.

Borrowings will bear interest at SOFR plus a margin ranging from 78.5 basis points to 127.5 bps. Darden will also pay a facility fee that ranges from 9 bps to 22.5 bps on the facility’s commitments, regardless of usage.

The margin and fee are determined by the company’s debt rating.

As with the company’s previous revolving agreement, there is a maximum consolidated total debt to total capitalization ratio of 0.75 to 1.00.

Proceeds may be used for working capital and capital expenditures, for refinancing certain debts, for certain acquisitions and for general corporate purposes.

The new agreement replaces the company’s previous $1 billion five-year revolver, also with Bank of America as administrative agent, which was terminated at closing with no amounts outstanding.

BofA Securities, Inc., Wells Fargo Securities, LLC, U.S. Bank NA and Truist Securities, Inc. are the joint lead arrangers and joint bookrunners.

U.S. Bank is also acting as a syndication agent alongside Wells Fargo Bank, NA and Truist Bank. Mizuho Bank, Ltd. and TD Securities (USA) LLC are the documentation agents.

Darden is an Orlando, Fla.-based casual dining operator.

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